Oct 15th, 2008
Well, No, I Can’t Buy Your House
Prices in the housing market have only been coming down very gradually here in the islands, although they definitely are coming down. However, after this past week’s stock market debacle (and the whole last year after the market hitting its all time high), I have to think that the housing market is going to get worse for sellers (and better for buyers) before it gets better (and worse, for those looking to buy). The reason I say that is this:
Exactly who out there who doesn’t already have a house is thinking that they can buy one after seeing their portfolios bottom out?
In time, the reduction in interest rates and a (hopefully!) loosened credit market (although we certainly do not need the subprime mess once more) will jump start the whole economy, including the housing market, but the prices of houses–at least around here–are going to have to come down in order for typical working class people to be able to actually afford them again.
In the meantime, if you’re looking to sell, I’m hoping you’re not in a position where you absolutely need to; if that’s the case, things could get pretty rough.
