That is a truly difficult question to answer. The fact of the matter we just don’t know. What we do know is that prices have come down from last year and it would seem the market has slowed down some I believe this is a combination of $ 8,000 credit expiration and the summer. Statically speaking people just don’t buy as much in the summer time, there is just too much going on.
In regards to price and the market hitting bottom, if we are not there yet we are very close. I say that because for the first time in a long time be are very close to cash flow, meaning that depending on the home value you could possible cover the mortgage payment if you decided to rent it out. I realize that that’s not your intention but it is a great indication of where we are. One of the reasons that homes that are in the $ 200,000 are flying off the shelf; it’s pretty much the same as renting. In the event it isn’t at a break even just give it a few more years and it will.
In the higher end market we see pretty much the same thing and you can see the opportunity just by calculating the construction cost, most home on the market are significantly more expensive to build that what they’re selling for.
Factor in that we have been in a down economy for the last few years no doubt about it. But as the saying goes what goes down will go up we have already lived the down part. The economy will improve.
Remember that the amount of money that has been poured into the system hasn’t yet hit. Look at the current interest rate, it’s unreal sooner or later it will have to increase and when it does you will made a huge difference with your home purchase. Not only with the value its self but with amount of money you will be paying to the bank. You will probably sell your home and carry paper
Don’t believe me, ask anyone that bought their home prior to the bubble, do they have equity? Have they made money? The answer is yes.