Decius wrote:

flynn23 wrote:
For sure, the predatory practices of lenders over the last couple of years has definitely pushed the market into uncomfortable territory, and there will be another wave of fallout as investors get whacked on their returns, but this will probably clear up by years end, maybe Q108, and then you'll see prices start rising again. Except for areas that are still dealing with fundamental economic depression (like MI).

Flynn's observations seem to track those of economists.

You're far too generous. I make that statement because of two keys:

1) US population debt to equity ratio is obscenely tilted in the wrong direction and real estate values rising has been the only thing keeping us from a massive depression.

2) Rental rates are too high in most areas. It's far cheaper to buy a home, even with junk financing, than to rent. So even tho a lot of people have jumped into the home ownership market who can't support a home (for whatever reason), they'll be back in line soon enough because they can't afford to rent.

RE: Housing, is this the year to buy?