how's this for definition? Even the banks are guessing it's coming to a close.
if you dont' have equity now, figure it'll take you 2x as long to get out vs. 1 year to break even. - Equity gains are almost cut in half.
Remember, figure about 10% off the top between realtors, excise tax (?) and seller concessions to sell your property.
Economist Sees 8% Home Sales Drop
Home sales will decline by about 8% this year and housing starts will drop more than 10%, according to Diane Swonk, chief economist of Chicago-based Mesirow Financial. In the April issue of Themes on the Economy, Ms. Swonk also forecasts that home price appreciation will slow to 7% this year, down sharply from "the almost unbelievable and unsustainable" 12.8% pace of 2005. "Speculation played a much larger role than we would like [in 2005], with mortgages used for investment purposes rising to a record-breaking 12.1% of the market in the fourth quarter," Ms. Swonk said. "This leaves us worrying about the magnitude of a market correction, now that cancellations for new homes -- largely condos -- are on the rise and speculative investment appears to be cooling." Mesirow can be found on the Web at http://www.mesirowfinancial.com.