Blah, blah, blah: The Southern California real estate bubble
Are you tired of hearing about the real estate bubble? If you are in the market for a home in Southern California, then you probably are hoping all this bubble talk eventually turns into a serious decline in home prices.
But is a significant drop in home prices ever going to happen and when, if at all?
According to a survey of 46 economists completed by the Wall Street Journal, you shouldn't expect much to happen for the next year or two. Through 2007, the majority of economists see stable home prices, or maybe a subtle decline - and we're talking a couple percent at most. (more)
While some economists do believe that this slowdown could eventually push prices considerably lower, it is beginning to appear that any larger price depreciation is still a couple of years away.
Is it worth waiting?
How much money will you lose by renting for the next couple of years? How much more expensive will your mortgage be if interest rates rise significantly?
It might very well be in any home buyer's interest to wait and see how the real estate bubble is going to play out; however, one thing is clear. If you are purchasing a home to live in for the next several years, historically, any price depreciation will eventually be recovered.
Timing the real estate market, like the stock market, is almost impossible. In such uncertain times, plan for the long term. The days of flipping at a profit are over.
More on the Southern California real estate bubble.
But is a significant drop in home prices ever going to happen and when, if at all?
According to a survey of 46 economists completed by the Wall Street Journal, you shouldn't expect much to happen for the next year or two. Through 2007, the majority of economists see stable home prices, or maybe a subtle decline - and we're talking a couple percent at most. (more)
While some economists do believe that this slowdown could eventually push prices considerably lower, it is beginning to appear that any larger price depreciation is still a couple of years away.
Is it worth waiting?
How much money will you lose by renting for the next couple of years? How much more expensive will your mortgage be if interest rates rise significantly?
It might very well be in any home buyer's interest to wait and see how the real estate bubble is going to play out; however, one thing is clear. If you are purchasing a home to live in for the next several years, historically, any price depreciation will eventually be recovered.
Timing the real estate market, like the stock market, is almost impossible. In such uncertain times, plan for the long term. The days of flipping at a profit are over.
More on the Southern California real estate bubble.
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