Isn’t this the million dollar question everyone has been trying to answer?
A lot of people have a lot of theories about determining the bottom of the real estate market. What I would like to do here is offer you the insight from Zillow.
According to their outlook,
…home values themselves, which are only one part of the overall bottoming process in the real estate market. The full process is made up of a number of different milestones. The first step in the bottoming process is finding a bottom in home sales. Except for the downward blip in homes sales in mid-2010 associated with the expiration of the Federal homebuyer tax credits (a distortion where sales in those months were pulled forward by the tax credit), the “organic” bottom in home sales seemed to have occurred in early 2009.
If you were one of those people gripped by fear, you have lost out on 2 years of investing and better returns, because (if you follow this blog) the last 2 years have seen a tremendous growth in the amount of investors from all over the world buying U.S. real estate at heavily discounted prices. In desireable areas, those discounts are no longer very large. In fact, here is how powerful long term investors have come into the market,
Three types of buyers with long time horizons are investors, retirees and second home buyers. There’s ample evidence that these buyers have been active in the market in 2011 as shown by the fact that investors have been making up roughly 20% or more of sales in most months in 2011 and all cash buyers have accounted for roughly 30% of sales recently.
Read the full article here to see how Zillow determines the bottom of the market
When it can be all around, all that is left are the stories, the monuments we make, along with the memories, with any luck , passed on. Being appreciated and our worthy efforts honored is most likely at the core of human interaction. I really hope the Mr. Sharkey gets to see the pleasure his hard work has brought other people, and Mr. Carpenter enjoys the car as well as the satisfaction he’s brought to its builder/driver.