I think you'll see the real estate market start the down trend. The over leveraged buyers holding arms and the 10% of the nation who hold zero equity in their homes are going to start to default more and more. These people are at the breaking point and real estate prices in most areas just have no room to go higher. Not to mention the the ignorance being shown toward the infrastructure across the US is going to bear heavy burdens when they turn to construction companies to have the work done and find that they are unbelievably undermanned. The skilled labor force will make out great as far as pay goes but will still not be able to meet the demands.
My understanding is a lot of the houses on the market right now are run down dilapidated houses that no one really wants to buy and yet if you look at the prices of these places you will find that they too are priced unbelievably high. This puts the final blow into the market because these start to cause a drag. It becomes to costly to buy the places and knock them down to rebuild on the good land because the market will not bear the price of the new house built in place of the old. This could either do two things it could cause the rest of the market to start to correct or open up some very good real estate opportunities. Either way the price has to come down. There is a game going on right now where people put their house up for sale then pull it back off the market after a few months looking to buy time until the market gets a bit stronger. In the mean time they are struggling to make their bills and fighting off defaulting and foreclosure.
I don't buy for a minute that the sell off was not someone seeing an underlining problem somewhere. Did you see the volume of that dip? That is the only scary part where you just don't know why the market dropped off 500+ points in a few minutes at record volume. Maybe the buying will go on and selling will slow but the volatility of the market just got a shot in the arm that is for sure.
Bear market??? Not yet.
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