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how long will the housing market stay down?

how long will the housing market stay down in the boston area. what signs do i look for before i start building again.

Public Comments

1. see a psychic
2. At least until after the next Presidential election. That will affect interest rates, the economy in general, taxes, etc. Right now, the consumer can't afford to pay much for a house, what with energy prices so high and the pass-along cost impact on groceries and other consumables. Still, just about every market has its "hot" areas where everyone wants to buy. I suspect Boston does, too. I'd focus on those areas and build.
3. With the increase in energy costs (utilities and gasoline), the increase in the price of basic necessities (like groceries), the increase in all forms of taxes and medical insurance....I can't see any good news coming from the economy until oil prices fall and the Presidential election happens. Good luck.
4. Depends on how much we need to borrow. When 99% of the people buy a house they need a loan, most banks cant actually afford to give them money. The loans are still serviced by the bank but sold on the open market at mortgage backed securities. You might pay US Bank but the person that owes your mortgage is probably in china or japan. Its a supply and demand question, the US government is entering the market and starting to borrow money. Its an open market. We dont have enough money to pay for the war, so when there use to be tons of money for mortgages, there isnt that much out there anymore. The 1 trillon dollars China decided to give mortgages, now goes to fighting the war in Iraq. This is what happens, china says we will give 100 billion dollars. The Government says we need it we will give you 6%. Fannie mae and freddie mac say we need that money too we will give you 6.25% Government says we will give you 6.375. They are competing for the same money. Reason home prices are going down is there isnt enough money to finance them anymore. Its a supply and demand issue. The buyer use to pay 4% which now cost 7%. You just killed 60% of the borrowers that use to be able to buy your house. Thats why the price of your house goes down. The market is dead. The only reason the US housing market is diving is because the US Government is borrowing so much. It increases interest rates and your property value falls, because nobody can afford the interest. You might hate clinton, but guess what he didnt need to borrow money. We are paying a fortune for this war. And the government is borrowing so much money secondary lenders keep raising the interest rates because the government needs to pay for it. Thats why mortgage rates are increasing and home values are going down.
5. The time to build your inventory is now. I am hoping this lasts at least another 18 months so that I have time to grab as much as I can.