[quote=5yearwaiter]At least San Diego housing may return back to 2003 prices level, it could take one or two years. Warren Buffett is saying this economy, job loss and other many dependent factors would take a while to settle down … not happening until 5 years from now…. [/quote]
The problem I continue to have with the rosy predictions from many in the media, (as well as some of the cheerleaders here) is the fact that few are including factors such as higher interest rates in their predictions. The current flurry of activity among first timers is directly related to extremely low rates. Those rates won’t last forever. Once rates go up, fewer people will be able to qualify for loans – particularly if prices go up at the low end. That could result in a flattening of prices at the low end, or even price depreciation if supply increases. And as the article in this thread clearly shows, there’s still downward price pressure at the mid/upper range. If and when rates go up, those pressures will be even greater.
As for the economy, signs of inflation are already showing…even before the majority of the stimulus package money has been distributed and spent. Its going to be a long and bumpy ride for the US economy during the next 18-24 months…and as such, that will continue to suppress the local real estate market considerably.
