Real Estate market has bottomed for all intents and purposes

[Bummbull]

Originally Posted by Podo944

That's assuming the rent wont be raised...
Right now, our rent hasn't been raised for quite a while, and maybe it was just the market a few years back but we were traumatized with $100 plus rent raises here in California in other apartment complexes!

We could stay here in our 1 bedroom without tax deductions for the next 5 years, but we'll feel at the mercy of our landlord. (plus no control about getting a new carpet etc.) or we could buy something comparable and stay there for at least 5 years as long as we keep saving for something bigger? Ug... I have moving though!

Yea, it's assuming the rent won't rise significantly. There are lots of assumptions you have to make when making decisions. When buying, people are probably assuming that house prices won't drop.
I'm assuming that with high unemployment and many apartment complexes as well as many houses for rent available around my area, my rent won't rise by much.

[Podo944]

Originally Posted by Bummbull

Yea, it's assuming the rent won't rise significantly. There are lots of assumptions you have to make when making decisions. When buying, people are probably assuming that house prices won't drop.
I'm assuming that with high unemployment and many apartment complexes as well as many houses for rent available around my area, my rent won't rise by much.

It's all a gamble I guess in the end... just hoping to make some educated ones!

[Bummbull]

Originally Posted by Podo944

It's all a gamble I guess in the end... just hoping to make some educated ones!

Me too!

[TechGromit]

Originally Posted by 399083453

I'm afraid you must be reading a completely different news articles than I am. Shadow inventory is at an all time high. Banks have still not dealt with people not paying their mortgage.

You can put them for sale at any price you want. Who are going to buy these houses?

Excellent point. But you said it not me. Who is going to buy these houses? Do you know what happens to properties that are left without people living in them for years? Without heat, with no one home to prevent kids from breaking in? Vandals and thieves? No one to scare off racoons and other animals from moving in? Answer, They get destroyed. One broken window and you have water damage every time it rains, pipes freeze and refreeze, rotting wood, in 5 years the cost of fixing these empty homes will be more than tearing them down and starting from scratch.

I don't believe the shadow inventory is all that much of a threat to the housing recovery. A large percentage of these foreclosed empty homes will be nothing but tear downs given enough time. No one would want to buy them, thus giving support to the price of homes people actually want to buy. This is one of the reasons banks are allowing people to live in houses for years without making payments, they are protecting there investment in the long run. It more cost effective to have someone continue to live in it for free than to try and secure hundreds or even thousands of properties. When the market recovers they can slowly foreclosure, evict and sell there inventory.