Tuesday, August 24, 2010

Here comes the rest of the fall...

I have been predicting for years that home prices would hit at least 2000 inflation adjusted price levels. Median incomes have not increased since then, while spending on health care and education have dramatically increased leaving less money for housing. I just don't see how we can support prices above 2000 levels.

For a few months though I was really starting to wonder if I was right. The government had been propping up home prices through tax credits. Today I am feeling a whole lot more confident though. Home sales have fallen to numbers that have not been seen in a decade, while the amount of time it would take to sell all of the homes on the market is the longest it has been in my lifetime. Still, I better get to saving, within five years we will have a great opportunity to buy.

No comments: