Wednesday, May 23, 2007

Housing Going Sideways for some time

This article in the AZ Republic states very bluntly what one economist thinks will happen to the housing market.

"We think real estate prices will move sideways or slightly lower for several years," said Thomas Higgins, of Los Angeles investment firm Payden & Rygel.

In another article, Warren Buffett had a similar stance, in his typical everybody's grandpa language:

But Buffett had a decidedly different view about the housing market. He said too many homes were bought by people carrying mortgages with little or no money down who then hoped to flip them quickly for a profit. "The housing market is sick and it's going to stay sick for a couple of years" he opined.

Again, if you can rent it out for a profit, it's still probably a good idea, but good luck finding those (though it's not impossible).

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