I’m the most bearish here of all, so am I overly optimistic in thinking that prices will stabilize when they equal 100x rent? I think once investors can be cash flow positive on rentals, they will start buying again.
My thought was that the lower end and properties which can be rented, will pick up first. A year later, the middle market, and last the higher end.
What can delay it all is the depressed economy and tight lending, as people won’t be able to qualify for loans. Imagine needing 5 or 10% down on a $200K house. How many people have $20K laying around? This is not exactly a nation of savers.
Bugs and privatebanker, were you specifically paying attention to this last time? Which sectors and communities picked up activity first? Also, does anyone have info on coastal properties, and how they held up in the last bust?
