Anyone older than 50 who has bot and sold a few homes in the past 40 years would be able to tell the Fed what to do to get the Real Estate mkt moving again
The Economy and the RE mkt is near death- WHY ? because people who need $ for a mtge cant get it from the banks, and those who have $ to buy are waiting for lower prices or getting extras that would not normally be available to them;
STALLING Now has benefits
Its just the opposite of the FRENZY when sellers were getting top dollar PLUS
and buyers were paying a premium because they intended to FLIP the property within 6 months;
BUT THAT SHIP HAS SAILED and wont be back for many a day, month, year, decade.
Its really very simple
What makes people ACT = FEAR of course
FEAR OF WHAT
HIGHER INTEREST RATES would be ONE good reason to buy now.
Prices wont recover until a bunch of homes are sold and the tide begins to turn
BUT - will the Fed raise rates -- NO-- UH-UH
why, because Ben is a student of the great depression and HIS FEAR is creating
another one. He would rather be remembered as the savior of the US economy
So, the market drags out TIME as we approach that 70 year cycle in 2012
Anyone who has bot homes over the past 40 years has seen home selling increase as interest rates rise- very simple- based on fear, people want to pay less interest.
I dont remember the exact time periods, ((1980's, for one)) but I do remember thinking about not wanting paying a higher rate and not wanting to wait as rates were in a rising trend.