Quote:
Originally Posted by Robnlaura
Again a lot of chatter about a pending housing crash be careful of those fully vested in keeping home prices high realtors Zillow and realtor.com I believe we are in for a moderate correction. When gas hits $5 we will really be in trouble
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Good comment, many principles have an interest in keeping the prices high: Realtors, sellers, appraisers, loan companies, just to name a few it's a stacked deck long term.
Regarding future prognosis: less QE will move rates up. Supply will increase. The developer will adjust build rate down to keep the buyers in a demand mode.
Resales available will increase. Mid priced homes will continue to price increase. Panic buying of mid priced resale will moderate. High end stuff will have a slower price increase. Buyers who bought the high dollar homes to rent and are highly leveraged will need to liquidate as they will not be able to feed the negative cash flow and will not see appreciation off-setting the negative cash flow.