When do you believe house values will begin to climb again? ?

3 Comments

1. o0brassmonkey0o January 16, 2013

   Normally there’s a one to two year lag behind economic crises such as the current one, so house prices will continue to sag for the next couple of years, and then they will perk up again, but probably much more slowly than the past ten years.
2. Mark B January 16, 2013

   I would love to say that its going to get better soon, but unfortunately it will not get any better for at least a few years. We have not seen this type of economy since the 30’s. With all the bailouts that have happened and there are plenty more to come. If we see any of the auto companies go under we could see millions of jobs lost which could prolong the market recovery even longer. My suggestion is to continue paying on your house, maybe go to your bank and see if there is something they can do for you. There is a possibility there could be some help in the coming year for mortgages. Good Luck
3. Thor January 16, 2013

   I figure around 2012. The subprimes are going away but they kept selling mortgages called “Option Arms” that don’t peak for resets until 2011.

   Look at the second chart here:

   http://www.doctorhousingbubble.com/the-housing-wave-of-the-future-two-main-mortgage-tsunamis/

   A large number of the subprimes that could refinance, refinanced in to option arms and only delayed the problem. It pushed it out further. And option arms are worse than the subprimes because they can be negative amortization meaning payments can be less than the interest so the debt goes up.

   Unless the government comes up with a program to offer low mortgage rates to everybody we are a long way from rising home prices.

   As to your house, you do need a place to live and inflation will eventually wipe out that $ 50k deficit. But it will take time.