BiggerPockets

Real Estate is cyclical as we all know so yes the market will come back and there will be a fortune to be made. The BIG questions is when.

All I can say is that this market now is awesome, the deals a plentiful and at the right price cash buyers are buying. In 2004 & 2005 it was a lot harder to convince motivated sellers to sell at a discount. Why should they, all they had to do was list and it would sell in days.

I think we'll have a hockey stick recovery, which is exciting.

Cheers :)

I agree with J on this one .... I don't see it happening any time soon, and while the market will improve, I don't think we will see home prices skyrocket with limited inventory like we did in 2004/2005.

I think it will simply be a steady climb this time around ... although, I don't know when that climb will start to happen.

I'm not betting on a quick recovery. I'm not betting on making money on appreciation. I'm just not betting.

I bought my properties for cash flow and my only 'bet' is that I can keep them rented with good tenants (which, as all LLs know, is a serious enough bet as it is). Anything else above and beyond that is gravy to me.

I agree with Coach, until people have confidence in their employment future they are going to hunker down. When they do wade back in it will be with baby steps.
just my opinion

IMO the real estate market will continue to run along the bottom until employment and credit issues start to resolve. I do not see this happening in the near future and could even worsen before climbing out of the current down market.

Can you believe it....we still have spec homes going up and being sold! Not like it use to be, but still happening. Unemployment is up here as well, trades and service industries. But we have a very strong health care industry and educational environment for the population. Tourism is big here as well and is off, but still viable due to regional vacationers. Beginning to sound like the chamber of commerce.....

I believe it will take several years for prices to rebound and bring the median home price back to where it was five years ago. But the are transactions made, prices for speciality homes may still command a premium and appreciate with demand. Specifically, second homes. I think these will come back first since there are many who may have acquired a primary home at these market prices and may have discreationary income to buy the second as well. Well, it's a theory. Green homes is another aspect that will continue to grow, IMO as well as existing properties converted for the green masses entering the housing market for the first time. That fifties ramch style that has not been updated or tinted green will be a long time to recover, if they ever get back to thier former price levels.

I'm fairly heavily invested in TX and lived in UT a long time and was very active there. Here are my facts.
154 unit in Garland. 5 vacancies as of this mornings' report.

40 + homes in TX, mostly in WAY south TX. Had 2 tenants give notice to vacate for 9-1. Placed signs and ads on craigslist. MGR had 7 showings of each on a saturday, both are rented as of 9-1.

Utah- Deflation started late and levelling off will be later. Some areas will improve sooner. Most publications have listed Salt Lake and Provo as a couple of the WORST places for rebound. ST George is even worse. My prediction on UTah is at least 2 years .

If you're talking about 50-75K properties, yes they're tightening. Doesn't matter what state, imo. TX is # 1 in my book, for so many reasons, and I have the stats to prove it. Rich

I'm sure the RE market will recover. When exactly is harder to say. Unemployment and tight credit will continue to put a drag on RE spending and appreciation.

In the long run, I can't help bu think that tough times will help teach the younger generation that is not always easy. Perhaps some will learn that need to be cautious about spending as well. Hope this translates in time to more fiscally conservative politicians.

There is more REAL money to be made now than ever before. "fake money" was abundant in housing just like in tech stocks 10 years ago. All paper profits that existed because of irrational exuberance. Homes will not reach peak prices for decades in real after inflation measurements. We have a lot of inventory and few people qualified to buy.

We are over-reacting, there are 10's of millions of people with good jobs who would pay a mortgage if given the opportunity. Until our system for determining who is qualified changes its gonna be a slow going thing.