Ok, so I’m hedging my bets here. But as I’ve said all along, the housing market was grossly inflated (still sort of is, but it doesn’t appear the regulations that make real estate so inefficient are going away anytime soon). It needed to fall.
How many of you have heard your grandparents talk about how they spent $10,000 for their house. Not to mention, the mantra of financial advisors trying to sell stocks is to conduct a seminar and use this to talk about inflation: “How many people in this room paid less for their first house than for their last car” (or some variation of that).
This is intended to get people to think about the declining purchasing power of a dollar as inflation sets in. But housing prices are inflated simply because our regulations are so geared towards everyone achieving the American dream. Which apparently, is home ownership.
HGTV and DIY channel fans rejoice! Because people will probably start buying and renovating again. Why? Housing starts are at their lowest in ten years. Existing home sales are at their lowest in ten years. Finally the real estate market has done what the much more efficient stock market did two years ago. It bottomed.
That is – maybe. People are less excited about real estate than they used to be, but as the prices become more attractive, they may tend to begin getting excited again.
Let’s just hope we don’t again say how much everybody deserves to be a home owner.