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Prices will continue to fall, maybe more slowly and dragged out over a longer period of time if the bailout passes. Inflation will rise and chip away at the real value of real estate as well. So, while everything else is going up in price, housing will continue to go down in price. At some point it will stablize and then remain flat for years and inflation will just continue to eat away at the value of housing until it's back down to where it historically has been with respect to median income.
Tighter lending standards, higher down payment requirements, higher interest rates ... all that will remove many buyers from the pool, reduce the amount that the remaining buyers can finance, and lower prices.
The bail out is of no consequence other than preservation of jobs and prevention of economic collapse. It means nothing to the day to day home purchase; I think we will see less foreclosures with the bailout than without, and in effect, less sales, more people able to actually pay the mortgage, and more stability. Thats it.
I'd say that the above are major influences to housing prices
Ok true, I'm just saying that housing prices aren't the reason for the bailout. Things will continue to suck for sellers for a while, we've known this... this will just help give a bit of a safety net to keep a few more heads off the chopping block, and in turn, a few less foreclosures. Fair?
16 responses so far and not one thinks this will increase home prices. I have to say that if there was no bailout this poll would be alot worse.like 100 to 0
Not really sure how it will effect NJ
But truth be told I did read an article on some of the areas really drowning
Phoenix AZ, South western FL below Ft Myers, Las Vegas and parts of Calif
Many of those areas are over run with illegal immigrants and those less then on the up & up mortgage companies would court them for loans for homes etc...it's not just Mary & Johnny buying more then they could afford
I just hope what I keep hearing is the truth...no golden parachutes for the execs
Ok true, I'm just saying that housing prices aren't the reason for the bailout. Things will continue to suck for sellers for a while, we've known this... this will just help give a bit of a safety net to keep a few more heads off the chopping block, and in turn, a few less foreclosures. Fair?
Well put.
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