Property Crossroads - Real Estate Info

Real estate slump not nearing an end

by Dan on May 6th, 2008

If there’s one question I’m asked as a real estate writer more than any other, it’s the obvious one: When is the housing slump going to end?

Unfortunately, I don’t have a good answer. No one does.

There are predictions, though. And, unfortunately, they’re not happy ones.

Take a look at this story in the Wall Street Journal’s online edition. Written by June Fletcher, it says that, according to economists gathered at the spring construction forecast held by the National Association of Home Builders, the housing market won’t show signs of improvement until early next spring, at the earliest.

The statistics aren’t good. Homebuilders have slowed new construction to a crawl. Existing homes for sale are sitting on the market for months and months. Housing prices in several parts of the country are either stagnant or dropping.

This is all depressing, I know. But if you aren’t planning to sell in the next five to eight years, you can relax. The residential market is a deep slump now, for sure. But real estate markets change. If you don’t have to sell any time soon, you’ll be fine. You’ll still make money on your house sale.

And if you do have to sell now? Be prepared to break even or, unfortunately, lose a bit of money. It’s unfortunate, but it is a reality. This market is a terrible one in which to sell.

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