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.
