Real Estate

[Mike M.]

Originally Posted by secondcurve

What do folks think about the real estate market? Is it time to trade-up? Do we have further to fall? It seems like activity has been incredibly slow this summer. Any input would be appreciated.

I think home prices have a long way to fall.

Unemployment is on the rise which is going to result in more home owners not being able to pay their mortgage. The additional foreclosed homes will result in lower home prices.

The only way we will see home prices start to increases before we get back to a more free market economy will be inflation. This does not mean that housing is once again a good investment; it will be the result of our money losing its buying power.