HousesforsalestaugustineBlog

The stock market and the real estate market have both been very challenging. For 2 or 3 years in the early 21st century, the stock market struggled ,  with low inerest rates and loose credit standards,  real estate gained momentum, peaking late in 2005. In the meantime, the stock market had regained much of what it had lost when the tech bubble burst.The Fed started aggressively raising interest rates, and in 2007 stocks topped out. Housing inventory ballooned and the mortgage credit system began to unravel,  and we are now hanging on the edge of recession. Until housing recovers ,it will be very difficult to avoid the inevitable decline.

The Fed is determined to push down home prices to avoid inflation ,and reverse some of the bubble's excess.  Only then we will see more attractive mortgage interest rates, a pickup in sales ,and stabilizing prices. In the meantime, sellers must  realize the only way to sell their home,is to price it up to 10% below market and get a quick sale before falling prices catch up with them. Far better to wait , if you can !  ...To help your sense of timing,watch the homebuilder stocks,...they should bottom 4-8 mos before the Real Estate market.

Buyers should start looking...especially new homes.  Builders are very eager to make a deal....