As the economic environment continues to deteriorate house prices in the US are expected to continue heading downwards. Within this context, a key question for property investors is how much more house prices will fall before they bottom out. The April 2009 Wall Street Journal survey of experts provides some clues with respect to this question.
Is four months enough of a trend to indicate we are coming out of a home sales slump of epic proportions? There is tentative good news to be had in many metro areas that saw housing prices improve as much as 3% in August, but it may not tell the whole story. In fact the best housing news is found away from the metro landscape.
If you are an investor and you are still waiting for housing prices to bottom out, you may have already missed the boat. There may be another crisis on the horizon, but it should not affect the real estate market as a whole. By the end of the third quarter of 2009, 1 out of every 7 mortgages in the United States was either already in foreclosure or in default. The smart and savvy investor will study the real estate market in his/her general area very carefully to see where the investment opportunities lie.
Recent studies are showing that the housing market is still at risk and will be for a few years. This does not mean that the housing industry isn't picking up slightly just that the their still needs to be caution.
It doesn’t take much to feel little more than gloom about the prospect of real estate as an investment tool. You can even begin to wonder how much you may ultimately lose if you have to move. However, recent indicators seem to suggest that a turn around is happening even as some housing prices continue to decline.
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