Real Estate prices continue to rise and fall from month to month, with no real trend developing
in any market. Where is the market heading next? Read on…
Whilst I have been reporting here that in some quarters commentators are predicting an upturn (especially those reports coming from the U.K) I fear that the basic fundamentals of the market will continue to place downward pressure on prices, at least until the beginning of 2010. There has even been renewed speculation that in California, of all places, there has been alleged sightings of an imminent upturn.
Real Estate Fundamentals
The fundamentals I speak of are those of the U.S. economy; temporarily supported by the Obama administraiton’s attempt to put a plug in the sink of its finances, we are now witnessing its slow unravelling. The T.A.R.P money supplied to ailing banks to support their toxic assests has now run out, and unfortunately has failed to avert the crisis, which will return with renewed vigour over the next few months.
If you have been watching the Amercian DOW jones stock index, you wil have noticed a slow turning of the recent rally, where values have been increasing over the last 3 months, thanks to that T.A.R.P money - but this now seems to be over. I’m also reading that U.S. executives are selling their shares in their OWN companies at the fastes rate since the market froze 2 years ago. Scary? I think so.
Home Sales and First Time Buyers
How does this relate to Real Estate? The two go hand in hand. If the economy is struggling, subsequently home sales will be sluggish. The good news is, house prices are becoming more and more affordable as each month goes past - a blessing for first time buyers, who have been pushed out of the market so too long. Are you a first time buyer? Now could be a great time to start researching your local market.