What she doesn’t say is that there is a lean supply of homes because so many people are waiting for the market to turn around before they sell – and many many other people who would like to sell cannot, because they are effectively trapped in their homes which are “underwater” (that is, they owe more on the homes than they are worth). … It means that in the face of weak employment and stagnant incomes, when interest rates rise (as they are apparently rising now), the prices people will be able to pay for housing are going to drop – and that’s going to bring house prices right on down too. … Suffice it to say that while it may be true as the President says that there is a clear trend of lower unemployment – that trend could be easily reversed and, as the article I linked to notes, the drop in unemployment is largely due to the fact that 206,000 more people have given up looking for work and are no longer counted as unemployed. I’ve sipped the last of my Earl Grey and I’m looking down at what’s left in my cup, and I’m trying to make sense of what I see there. … Our pre-tax payment will be considerably higher than that, of course – so I for one really hope they don’t pull the plug on the mortgage interest tax deduction – which could , of course, have a really deleterious effect on home prices depending on how it is implemented.
I have been crushingly busy – and that’s a good thing, considering how many Realtors are suffering the fate of the Maytag repair man . It’s actually been kind of slow on the news front, though. … Anyway, we got out of there after just a couple of minutes looking around, it wasn’t the most hospitable home showing I’ve had, and I don’t think my clients felt very comfortable. … Others say that it’s going to get worse before it gets better (always possible, just look at the unemployment figures, gas prices, and the consumer confidence index). … But property prices are getting to the point where they are affordable to a great many more people than in recent years – and while prices may continue to drop, I say, if you find a deal on a house you love at a price you can truly afford , then there’s probably no time like the present to buy it.