Is the real estate crisis over?

[Jahbulon]

Is the real estate crisis over? Is it just that there are a lot of doom and gloomers out there that are over hyping the reality, or is the threat of another collapse real? Could it be that we are just in for a long slow recovery?

[rdrtch]

"Total properties receiving foreclosure filings would have easily exceeded 3 million in 2010 had it not been for the fourth-quarter drop in foreclosure activity - triggered primarily by the continuing controversy surrounding foreclosure documentation and procedures that prompted many major lenders to temporarily halt some foreclosure proceedings," said James J. Saccacio, chief executive officer of RealtyTrac.

"Even so, 2010 foreclosure activity still hit a record high for our report, and many of the foreclosure proceedings that were stopped in late 2010,-which we estimate may be as high as a quarter million, will likely be re-started and add to the numbers in early 2011," Saccacio said.

BTW, I voted no.

[Jahbulon]

See, this is all very interesting. I know the stats and what everyone is saying. I also heard Paulson, who betted against the subprime mortgage debacle and made piles of cash say numerous times now that he is buying real estate hand over fist.......

[athuddrive]

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[Reese99]

I think it depends on what you consider a 'crisis'. I think this is a great time to buy investment properties, if you can get the loan for it, as interest rates are low, and housing prices are probably near the bottom of where they're going to go.

That said, there are a ton of foreclosures on the market, a ton more people who are stuck in an underwater mortgage for the next 5-10 years while they build up equity again.

I don't think housing prices are going to rise much at all over the next 5 years or so, but neither do I think they'll fall much. Investing now would be for long-haul renting, not for fix-up flipping, as sales are still very weak (thus all the bargains to be found).

Texas, DC Metro area, anywhere that the job market isn't (as) terrible as elsewhere, would all make good places to invest in real estate. If you've got the money.

(I'm not in any way affiliated with realty, nor do I have any idea what I'm talking about, ever. These are just my opinions. Following my advice will lead you to financial destitution and possibly baldness.)

[macbeth]

People are still out of work and foreclosures will continue as the economy continues to recover. I don't see their rate increasing anymore though. however, many people are beginning to get back on their feet and have faith in the economy again. I see those people jumping on the chance to buy homes cheap and the real estate market beginning to recover. It will be a slow process. Don't expect another real estate boom anytime soon as I think people will be wary until they forget this happened 20 years or so down the line.

[flight23]

Depends on if you are trying to 'call the bottom.' If so, then you'll probably be wrong, but from here out seems like the downside is limited whereas the upside in the long haul is significant.

[McLovin]

It depends on where you are. Here in Virginia my wife set 7 new construction contracts already this week with a possibility of 10 before the weekend is out. Some states may take longer to recover but areas that have a population with a high turnover rate will rebound this year. You can buy a half million dollar home (2006 prices) for 260, to 300 K. Not in a very time has there been an opportunity for people with good credit to get a bargain price. Upgrades are possible, as that I've seen one couple sell their 450 K home for 380 to upgrade to buy another 450K home that would have easily cost 750 to 800K before the housing crash(2008 prices). Opportunities abound for buying short sales as well. Interest rates are the lowest in history. Depending on where you live this is the year the rebound begins. Areas like Las Vegas, California, Arizona are probably still be behind this power curve but others will rebound. If you are buying property and with the thought of renting or holding onto it for resale. Opportunity is available (but like anything) but some areas are rebounding now.

[MLKMAN]

Just as sentiment is a contrarian indicator for the stock market, I wonder if it could be one for the real estate market as well. Hmmmmmm