I think at this point it’s obvious the government is going to do something, and that great unknown as to exactly what is unsettling.
Debt forgiveness, re-negotiating rates, major foreclosure prevention, etc. There are a lot of possible scenarios that could keep people in their homes, and create a pricing floor.
So while they can’t stop the train, and those who have already been run over are toast, I can see the government stepping in to slow it down.
If they are able to manage that, it could end up helping the more desirable locations, and higher end homes the most since they will be the last to have heavy decline in most markets. Lower and middle class get steamrolled, upper class gets saved in the nick of time? (Even though in many cases people buying these homes can’t wildly afford them)
And the part that has me concerned is, as a saver – keeping liquid funds these days is getting harder & harder. Where do you put it? Interest rates keep getting cut, stock market is volatile, and inflation is going up. The 5% high interest accounts are quickly going away, and soon it’ll be 2-3%. Once you tax that, and factor in inflation – say goodbye to the money.
Maybe we’ll all be on this board 5 years from now.. still waiting for those significant price declines in the nicer parts of town, watching our savings get eaten away, while a lot of people who overstretched live beyond their means via government intervention. Life isn’t fair and all that?
Maybe not – who knows. Someone wake me up when CV, RSF, La Jolla, or any of the other commonly desired locations has anything significant of a price drop that doesn’t get multiple offers the next day.
