Real Estate hitting Bottom?

[red-beard]

Moved discussion to:

http://forums.pelicanparts.com/off-topic-discussions/234129-more-bad-re-news.html

[jyl]

I strongly think this should be discussed as part of the more bad re news thread, which is linked above. Not a separate thread. That thread needs to continue, for history and context. If you agree, post there - maybe even consider deleting this thread, red?

[turbo6bar]

All depends. Employment; where is it going? Wages; still stagnate? Distressed property inventory? Access to financing?

I think we are closer to the bottom than the top, but any moves need to be part of a long-term strategy. Personally, knowing what I know about my area, and given my financial position, I plan to start buying rental properties again later this year after clearing a huge backlog of work. I can buy properties today for less than prices in 2000. That's crazy for flyover land. The flip side is property taxes, insurance, and expenses are up while rents are up only marginally in the last decade. I might miss out on 5-10% declines, but I'll be picking up an investment generating 10-11% cash-on-cash return.

That said, it's not all rosy. I'm selling a McMansion, and it'll probably fetch below build cost + land. The only thing saving my ass is having no mortgage. The neighbors are gonna hate seeing their house values crater. That's life.

[Joeaksa]

Phoenix is starting to come back up in selected areas. Thank God I live in one of them...