You’ll definitely see some stickiness to the market, it won’t be an overnight drop in prices, it’ll take years to find the bottom of this thing. You’ll have to wait until all the ARMs reset, until it’s harder (if not impossible) for people to qualify for loans, until people psychologically adjust to the fact that the market is declining, and that they aren’t going to get rich on those houses they bought, and that they aren’t going to find anybody to buy that overpriced piece of junk in the bad part of some town in the desert, or that 700 square foot “condo” that’s really an apartment that has a granite countertop.
Then you’ll probably buy from somebody that has held their house since before the bubble started and can afford to sell at normal prices. For a “bubble sitter” there are alot of factors that can come into play in our favor, but you will have to wait for years for them to all kick in and have their effect.
Why the rush, rent’s cheap!
