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Wall Street Article About Home Prices

WSJ published an article Tuesday that may be received as a slap in the face by many home owners.  The article (with the byline Americans still see real estate as their best shot at wealth. It may be wishful thinking.) addresses the future of home prices.   You can read the entire article here, however below are several points I found especially noteworthy.

  • Economists predict home prices will continue to fall for 1-3 years and then “scrape along the bottom” for many years after
  • Historically, house prices have risen at a rate just above inflation and roughly inline with household income (some experts even say it’s a bad idea to count on your home value rising at all!)
  • Home values in the Carolinas are predicted to stay strong due to retirees and immigration
  • We can expect major challenges in areas where there aren’t enough young buyers to absorb inventory from boomers who are selling

The moral of the story? Real estate is not a silver bullet to wealth, but rather a good way “to get rich slowly.”  If you need to sell, price your home to move NOW- prices are falling and will continue to do so for years.

This entry was posted on Thursday, December 4th, 2008 at 5:41 pm and is filed under Market Reports, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

9 Responses to “Wall Street Article About Home Prices”

  1. joey Says:
    December 30th, 2008 at 2:58 pm

    For a quote on current mortgage rates or for more information on our many products please contact an Alpha Mortgage Loan Officer today! We proudly serve clients in Wilmington, Charlotte, Greensboro, Winston-Salem, Jacksonville & Southport North Carolina.

  2. Freddie Says:
    June 23rd, 2009 at 12:48 pm

    Thanks for noting all the important aspects of that article. But I can see the real effect of global recession here. And I agree, we can simply know the future of home prices. But there is still hope. If only we will all be informed about the proper way of managing these needs. And in case anyone of you needs some assistance for mortgage loans or other loan modification, feel free to visit New Leaf. :)

  3. Debt Rescue Says:
    July 17th, 2009 at 6:42 pm

    I enjoyed reading your post! I’ve been looking around for such material regarding Debt & financial help.Although it looks difficult to gain Financial Freedom but its simple and easy.

  4. Dubai Properties Says:
    July 23rd, 2009 at 8:37 am

    The real estate as gone down.In dubai the construction as been completely stopped .The rents as been droped 50%

  5. Virtual Hogwarts Says:
    August 3rd, 2009 at 12:25 pm

    Seems like we’re addressing the issues at hand. The market is up today because of the unexpected rise in home sales and the bank plan to free up frozen lending.

  6. Teenage girls Says:
    August 7th, 2009 at 10:10 am

    If you own a house and can pay the mortgage and the prospects of keeping your job are good, why not hang on to the house and continue paying for it? The market is already depressed, and there’s a glut of houses for sale out there. The odds are that you won’t get a good price for it.

  7. tommy Says:
    December 2nd, 2009 at 9:58 am

    agree with you and i think property investment better for cashflow than buy and sell

  8. Jamesh Says:
    April 20th, 2010 at 2:23 am

    Awesome Post.
    I really like your concept.
    Thanks

  9. gowns Says:
    July 20th, 2010 at 2:21 pm

    I agree some markets will remain depressed for years to come. The general economy is so sick that it is not easy to recover within a few years. However there is a huge amount of cash just sitting out there waiting for target locations to invest in. The key is political pressure to create jobs. Not pressure from politicians but pressure on politians to perform or be replaced. The good ol boy way of doing business is just not getting the money out to the people.

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