Is it time to buy yet?
I get that question a lot as I warned people to buy into the real estate bubble back in 2006. And the answer is still the same: A big resounding NO! Run as far away from real estate as you can over the next 12-18 months. Remember The Money Pit?
The data that is pumped through the oh-so-objective media channels (FOX, CNBC anyone?) is just a head fake: “green shoots”, home sales stabilizing, market in recovery mode… et cetera. We’ll hit a 10% unemployment rate and escalating foreclosures before we can talk about any bottoming process.
Expectations needs to adjust to the new normalcy, to the post bubble world where fundamentals actually matters. But before we’ll find a equilibrium real estate prices will overextend on the downside, way beyond the long-term average.
Buying real estate today is pure gambling; spending a weekend in Vegas might offer better odds!
1 note
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1lucas answered:
wise words. People are eager for some recovery, and might buy the “green shoots” idea without further analysis.
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perhakansson posted this
