This is just the beginning. Don’t be fooled thinking that the crash is over. There are too many people who have to sell thi s year. Home supply will be high. Sub prime is fading away. Think of all of the RE agents, lenders, construction, landscapers, and related jobs that have or will be lost due to the end of the housing buildup. People are already loosing jobs. Recession possibilities are in the news.
The dollar is loosing value to foreign currencies. Rents are still less than half the cost of buying w/ 20% down and fixed 30year. Home prices are still way above historical relationships with wages. I know a few people who tell me that they need to sell their McMansions this year and that they would be lucky to just break even. There is just not enough people with the adequate incomes to continue to buy homes at these prices. Thats the bottom line. This will take years, not months, but by the holidays, you will see how much hurt many of these home owners are in. Be smart, not emotional.
