Yes, EconProf, we have a perfect storm developing in real estate
– declining prices
– declining rents
– increasing aversion to financial risk taking
– increasing difficulty in obtaining mortgage loans
– rising inventory of for sale and for rent housing
– increasing unemployment
– pay option ARM loans resetting for next 2 years
eventually the final nail will be put into this coffin – that will be rising interest rates
at the bottom in 2012 or later, those of us who have maintained our ability to actually purchase real estate will have a field day
what’s even cooler than that is that from the bottom, real estate investment will only get better – interest rates will decline and demand for housing will rise
you only need to make a few good investment decisions in your lifetime (while avoiding the bad decisions of course) – IMO waiting for the bottom in real estate is one of those good decisions
