Except prices are down 30-60% across the board and interest rates are lower for those with strong credit. These facts are working in favor of the market … the facts opposed to the market are high unemployment, distressed loans, stock market selloff from 14k, etc.
Right now it is a tug of war between these factors. This is not really in anyway that I can think of like 2005. Not near as much funny money out there for one thing. Also the high end is pretty much dead except for the absolute best properties and deals. Again unlike 2005 when they flew off the shelf at ridiculous valuations.
Some people think we are in a bubble just because they are not the only ones interested in buying a house in SD at these price levels.
I have to say that the markets I’m looking at regularly have definitely cooled down for the winter. Probably will see some very good deals close over the next few months.
