I’m going to go out on a limb and make a controversial statement. I believe prices will be at 2000 levels by 2009/2010 and stay there for a couple years before going up slowly at the rate of inflation.
1997-2000 was a big run up already thanks the tech euphoria. Then you had Fed induced liquidity from Y2k; then you hadFed induced liquidity from 9/11; then you had the NINJA loans financed by foreigners and wall-street.
I don’t see anything out there that will save the market. Remember 2000 prices were unaffordable to a great majority of the population already.
100% financing and other exotics have been around a long time and will continue to be available to folks who have good professional jobs and good credit. Those loans will no longer be available to every breathing individual who walks in the door.
People will call me crazy and will want me to offer proof that prices will drop that much. Well, perhaps the more optimistic ones should offer proof that prices won’t drop to 2000 levels.
Others have posted much more pessimistic predictions. I think that mine is pretty fair and balanced.
