It is also curious how these forecasts always seem to predict a smoothing, a leveling, a slight up or downward trend. What a pleasant thought for homeowners! Even though my home has already gone down 5% I feel so much better knowing that it is just a short correction and that the market will soon go up again. One can sleep better at night knowing that their $800,000 house (bought with a 7-year interest only ARM, no money down) that is now worth $750,000 will someday return to the peak and beyond, albeit at a slow, peaceful rise over time. Like the ripples in the ocean the market glides along smoothly, always sturdy, always heading upward.
Looking down the street I’m not concerned about the 20+ homes that have been for sale for 6 months, all reduced, without a single offer. I’m not concerned about the fact that I live in a new community where 75% of the buyers used risky interest only ARMS and negative amortization loans. The BMWs, Mercedes and JAGs that populate the driveways of my ‘prestigious’ gated community in the hills are a sign of the regions wealth and the hard work of my neighbors, whom I have never actually met. The few homes that have for sale signs on the car and the house really don’t bother me either, after all I’m sure they are looking to upgrade their car. My wife and I work long hours and simply don’t have time to research the market or go onto piggington.com, but we do read the paper and there have been some reassuring articles as of late. Just today I saw the president of NAR quoted as saying that things are leveling and that prices will rise again. We’re actually thinking about taking out an equity loan and buying a rental property right now. There’s no better time than the present since there are some deals out there!
