Alan Greenspan (former chairman of the Federal Reserve), has made his prediction: real estate recovery should begin in early 2009
. Greenspan cited as one of his reasons for the prediction, that United States homes prices have begun slowing in their decline in value. And that this is the first step toward making progress for investors to start considering taking risk. Greenspan went on to say that he believed that during the first 6 months of 2009, that he believed home prices would stabilize, and that once the real estate market stabilizes, that it will lead to a more stable economy and market.
Greenspan I’m sure is talking about the national market. I would love to see people’s thoughts on the country region by region and city by city.
I hope Greenspan is right, it would be good to see the housing market stabilize. I do hope the interest rates do not climb too high in the coming months. I think another 10% decline in housing would lead to a number of investors getting back into the market.
IF we can keep the government out of it that will occur. However with so much help from Congress it is bound to become another Freddie Mac and Fannie Mae affair.
We shall see.
With such low current interest rates, it makes sense that residential real estate prices will begin to stabilize. But, if interest rates go up substantially due to inflationary pressures, watch out below!!