Crystal Ball is Cloudy

“The clear problem in the housing market today is not foreclosures, but negative equity; and as long as the focus remains on the symptom rather than the disease we will see little progress towards real solutions and this crisis will drag on for years to come," says Sean O’Toole, CEO and Founder of ForeclosureRadar.com.

“…80% of people who have a mortgage in Las Vegas are underwater. 16% are delinquent on their mortgage payments. Why …? Some cannot make their payments... but many others simply don’t want to continue making mortgage payments on a house that is worth only half of what they owe on it,” reports Kristy Black, Business Development, Fidelity National Title.

What does this mean for prices? I have been trying to get a handle on it and I think it means "don’t believe much of anything you read until after the election." The arrows on the sign posts are all pointing in different directions depending on the agenda of the writer.

I think Mr. O’Toole’s “drag on for years to come” statement might sum it up. Google News articles hint that we sales are up (start of recovery!) but prices are falling (no recovery yet!) and may continue to fall.

So, if you need to sell, the possible continued fall in prices makes NOW better than Later. And if you need a house, buy a house. Even if you wait, it’s always going to be something.
If you want to bet on lower prices and you can wait, then wait. Just call me when you are ready … and please share with me what made you pull the trigger. We all want to know!
My Magic Crystal 8-Ball is cloudy.