The retraction is not impending. It is here so I would use the term current retraction. It will continue for a few more years.
Financially the best way to protect against it would be to not purchase if you can hold off. Even holding off another year or two may save you a good chunk of change. Many on this board forecast a large drop in the median in the next 12-18 months. I think there is a possibility of that to happen but real estate moves slow… really slow. However you never know. Alot of data seems to support a chunk downwards… I think certain segments can and will chunk down but I am not so sure more desireable ones will chunk down in a 10-20% manner but ya never know! I am more of a longer protracted downtrend kind of guy. In the end we all are of the same opinion for where we will end up.
I know many people purchase homes other then for financial reasons. If this is the case then the best protection is to get the best deal you can. Lowball people, be very selective, do not overextend yourself…. etc. I believe condos will continue to depreciate at a higher rate then detached homes but on the whole everything will move down. You may want to think about value as well. Recurring fees such as Mello Roos and HOA are something you can choose to avoid but if you have your heart set on a new home, then these fees will be inherent in your purchase.
