Rolling wave for the nation. Recession will start in Q1 07, unemployment will rise, and the winter selling season will be dismal for those who need to sell. By next summer, psychology will be real bad, buyers’ fear will grow, and by 2009, people will be in panic mode. If you are a seller in 2008 or later, it will seem like the buyers have really disappeared.
I don’t know if the Fed can lower interest rates a lot, start a bunch of government works projects or alternative energy projects to reduce our reliance on overseas oil,, all to raise employment, but without any of that help, I think it’s more like a tsunami.
On a related note, when I hear realtors tell me they have buyes waiting on the sidelines for fall for price drops, I feel real bad for my realtor friends. There is NO way that a buyer who is waiting for price drops, will buy in the fall. Why would a person who is waiting for price drops buy when prices are really starting to drop? Wouldn’t that kind of person wait even longer, to see how much further they will fall?
Most of the buyers out there now are the ones who don’t understand asset bubbles. The rest, a minority, know prices can drop but don’t care. I presume they don’t care because they have NO idea how far they can go down.
