Steadfast Finances
A Personal Finance & Investing 101 blog that delves into current events, consumer education, and techniques to improve your bottom line.
Home Prices to Fall Another 30%: Analyst Who Called Crash Makes Bearish Call on Real Estate
Several readers have emailed me over the past few weeks asking my opinion on the current state of the real estate market after my post on mark-to-market accounting practices.
The gist of these questions went something like this:
Is now the time to buy a house?
Have we hit a bottom in the real estate market?
Good questions!
My answer to all was a resounding:
I don’t know!
I’m not the all-knowing swami, and making sweeping projections that could cost a reader a six figure faux pas (if I’m wrong) really isn’t the purpose of this blog.
However, one of the few analysts who made the correct call in 2007 to get out of the market — or more correctly, to get out of the financial sector altogether — continued her bearish predictions about the banking sector in a late day CNBC interview.
However, her most bearish statements related to the housing market where she feels housing prices will continue to sink lower.
According to (superstar?) bank analyst Meredith Whitney:
Housing prices could fall as much as 30% from current prices!
[See CNBC video below. Housing comments ~ 4:45 min]
Timing the Real Estate Market?
The best advice I can give is to anyone attempting to time the real estate market is this:
- Follow proven finance professionals (like Meredith Whitney, Peter Schiff) who made the correct calls.
- Track the historical price of homes where you want to buy. If prices suddenly spike, hold off on buying. If prices take a dive, start looking for a home that meets your requirements.
- Use your own best judgment based on your financial situation. Don’t buy a house that you can barely afford just because it drops 30% in asking price.
But remember, trying to pick the absolute bottom is really a suckers game!
If you enjoyed this post, make sure you subscribe to my RSS feed, or follow me on Twitter or Facebook! Related Posts Related Websites
4 Comments
Apr 7, 200910:48 am
Apr 8, 20099:39 am
@ Kyle
That’s good news considering all the bad press lately. I read somewhere that the housing dip has “only” hit a few selected areas around the US more than 10%. Areas like south Florida, Phoenix, etc. were the big losers.
Then again, I would imagine there are people in Kansas or North Dakota still asking…
There was a Real Estate Bubble?
[Reply]
Popular Posts
Should We Adopt a National Sin Tax on Junk Food to Reduce Obesity Epidemic?67
Visualizing How the Things You Own, End Up Owning You65
My Plan to Beat the Lending Club, Peer-to-Peer Investing Average53
Living Beyond Your Means: School Bus Driver Losing Her $800,000 Home to Foreclosure49
10 Reasons Why Investing in Gold is a Bad Idea49
Blog RSS Feed
Follow Me on Twitter
7:57 am
Interesting article.
[Reply]