BiggerPockets

2012 my seem like a long way off, but 28 months isn't that far away. This Business Week article is a couple months old and it predicts a couple more down years followed by a return to normalization. Of course it hedges it bet with the standard "all real estate is local."

Where Housing Will Be in 2012

http://www.businessweek.com/print/magazine/content/09_26/b4137028238311.htm

I expect that nationally we might have another mortgage crisis and a double dip recession, impacting prices negatively. See
http://www.biggerpockets.com/renewsblog/2008/05/20/alt-a-loans-the-crisis-yet-to-come/

On the other hand the "real estate is local" talk is quite true. In the WNY area housing never rose much more than 5% per year throughout the boom years and even when national prices are dropping our market continues to grow ~5%

2012 is ample time for the market to turn over. I've heard from a bank representative I met that the market probably won't turn around until 2015, but I think she may be wrong. The market price of homes can only get so low before they the cheap price of homes just becomes too irresistable. So let's assume the price of houses gets chopped by 1/4 over the next year. People will be rushing the housing market like wild bulls trying to get a great deal on those houses. It would be crazy not to. I think the market will be on the rise by 2012, but home prices will not be any higher than they are now.

Susan, property prices in Tokyo are down about 75% in the last 20 years. Prices definitely can go down steeply and continue going down for a long time. I am not suggesting that the same thing will happen here because our bubble was a lot smaller than their bubble from the late 1980s. But I think it is important not to invest simply based on a "feeling" that things will start going up. I would rather have proper metrics to support my decision.

Wrong question. What will the DOLLAR be worth?

The base money supply since Obama was sworn in has went from 1.2 to 1.8 Trllion.

Do the math people.........

The key to this game, trade inflated assets for cash, trade the cash for deflated assets

What happens when Israel starts bombing Iran in the next month or so? What happens when oil goes back up as a result? Will suburban homes become less expensive as people want to live in urban centers to save gas? What will happen with China who gets a large portion of their oil from Iran? If Israel bombs Iran we will be dragged in as there will be terrorist attacks left and right by Muslim extremists bent on getting rid of all Christians and Jews. We are living in a time when no one can tell. Best of luck.

This discussions is far too rational to be about money and politics, :D

Wow! Some of those answers sound like you might want to get a massive ice cube right now, one that won't melt until 2012.
Take it in your garage, stand on it, put a noose around your neck and wait patiently for 2012 to come along. Oh, and in the meantime, please keep the doom and gloom to yourself!

Personally, I couldn't care less what my house might be worth. a) I won't be living in it because I'll have a bigger and better one that I stole from some dumb bank and b) Only I am in control of where I'll be in 2012, not a war, not a stupid terrorist and certainly not a dumb government.

2012, Bring It On! :)