Will The US Real Estate Market Bottom in 2009?
The US government came out today with a report that stated that new-home construction plunged to an all-time low.
Last week we wrote an article in which we talked about the ever-increasing number of foreclosures in the United States. In 2008, one out of every 54 housing units in the United States received a foreclosure notice.
Prices in many markets continue to tumble.
At the same time, there are some major markets that appear to be stabilizing.
The question is - at what point does the US housing market start to stabilize and begin to work its way higher?
Do we have 2-3 more years of doom and gloom, with another 20-30% in price drops?
Will the rising tide of foreclosures conspire to bring the US housing market down even further?
Will banks begin to lend again?
Will home buyers finally decide that now is the time to buy, or will they continue to wait on the sidelines?
When will demand catch up with supply?
At some point, the rate of foreclosures will start to slow, and some of the incredible supply in the market will start to get bought up.
There will come a point when people start to buy, and banks start to lend.
There will come a point when even the hardest hit real estate markets (Florida, Nevada, Arizona) put in a bottom.
Is 2009 the year?
Can the real estate market hit bottom when there are still so many questions about the economy and the financial sector?
Can the US real estate market bottom in the middle of a crippling global recession?
Will the average American have the confidence to buy a new home in this environment?
What do you think?
Do you agree with Jim Cramer when he says that the real estate market in the United States will bottom in the middle part of 2009?
Or do you believe in the more bearish stances out there that believe we won't bottom until 2011 or 2012?
Please post your comments and thoughts below..
Filed under: Real Estate News