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Originally Posted by Barefootsies
That sounds about right.
I am looking at some real estate options later this year, and between banks and interest rates, and the housing glut, and adjustment of prices among other financials. It sounds like a lot of them are saying to wait out the storm because it's going to get worse.
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Think you are right in riding out the storm. There are plenty incentives from developers to encourage buying, but the only reason for the incentives are that the developers are under pressure to move product.
It's hard to say if this is the main event yet or just a preamble, tho many small things indicate a hardening up in lifestyle/money supply. Example.. the use of plastic cards, - these were traditionally used for impulse mall purchases etc. But now cards are being used to buy basics, like food - and less on impulse buys of non-essential products.
On a bigger scale and more related to property - there have been a lot of mortgages issued based on fantasy and little hope of repayment and home builders are throwing out high sales incentives in an effort to move stock and meantime dumping land stock assets to anyone willing to take a risk, - that suggests a problem.
When you think that homes account for about 23 percent of the U.S. economy when you add sales of home contents, housing-related jobs, small home building companies - skilled laborers - contractors/subcontractors - real estate agents - title companies - retailers/ manufacturers of home products et al - that is one large lump for any economy and vital it remains intact/stable.
There are too many other factors which can be good/bad, but generally the good side is harder to find in Pandora's sustainabilty box...