Interest rates up 25 basis points on the latest Fed tapering. Hopefully we’ll see 4.5 or 5% by October when QE3 is finally put to pasture, giving the real estate market a massive shot in the arm.
And by “shot”, I mean shot of Propofol to put it back to sleep, Michael Jackson style. A bit of a drop in prices will put a lot more skells who bought into the last bubble under water, slowing things down further, starting a virtuous cycle.
What’s the rush? Wait till the skells have to sell short again, then jump in like a Russian paratrooper late to a party in Donet’sk.
Yeah, there’s talk about relaxing mortgage standards so more crappy-credit cretins can buy condos and cribs, but this will take a year or two to happen, what with the QM rules.
Also, keep in mind that if you buy in Atlanta now and rates go up, your value might be hit and you’ll regret not buying in CA. Property markets seem to have slowed down or be in the process of doing so. I’d adopt a wait-and-see attitude rather than making a life-altering decision now.
