The price of homes will?

Rich people? lol

I can barely afford the hike in grocery prices or high gas prices (thank god they went down) but I still need to eat and drive my car...and people will still want to buy homes.

There are a LOT of factors involved with what could potentially happen to the economy and the housing market in the future. My investment broker was saying something to me the other day about us potentially going into the first "deflation" in almost 100 years =S

It is a buyer's market right now, but sellers are still not wanting to let go of their homes for low prices because they feel they are going to lose a lot of money from when they themselves bought at a 'balooned price.'

I don't think you need to worry though... housing prices won't go up again for at least several years, and only being contingent on certain things improving for our overall economy. Hopefully by then, our wages will have increased =)

(added) if our debt stays at the current rate...(higher prices on cost of living) and our income does not go up, then if the housing market went back to previous prices... no average person could afford a home (or get approved for a loan) at the current rates of debt to income ratio. Let me stress again... the "rich" - people with $ and influence, will be the only ones with buying power.

Well Bigun...

First off...never say never... it could get you in big trouble down the road... Next...as to "who" will be able to afford a home if prices were to return to their peak pricing... there will always be the elite among us who are able to live far better than the "norm"...

What the current crisis is doing is the very thing that has been going on in other elements within the economy for some time.... and, that is.. a "killing off" of the American middle class.... First... the government not only sits idly by while the middle class jobs are outsourced to places all over the globe....then they allow a massive infiltration of Mexican illegals into the system... while burdening this sector of the population with massive debt load to the national debt which they had relieved the wealthiest Americans from being concerned about... and then looked the other way as finance institutions and Wall St. conducted business in very unsound methods for years... all of which has compounded to drive the middle class to the edge of extinction ....

Those who got into the real estate markets to take advantage of the "boom" there for years... and got themselves so over extended that they were running at razor's edge in the good times... are now in major jeopardy (if they haven't already gone under) of financial ruin on a daily basis....

It seems that the powers that be are interested in seeing the middle class families driven into apartment dwelling as a great deal of the poorer Americans are living already....and, with real estate prices being what they are at present... and falling on a continuing basis ... you can bet a buck fifty that every "fat cat" investor is out there right at this moment.... sucking up every chunk of under valued realty that they can still afford..... and, they will eventually make millions from it !!!

☼ ////

The part of what you said that makes sense is that in many parts of the country the house prices were way out of line a couple of years ago. My long experience is that when a bubble bursts the prices crash and go lower than they should- then they recover to where they "should" have been in relation to the "new" supply/demand equation.

In many areas of the country right now many people that want a home can not buy one because of the lack of good loans, and because of the fear the buyer themselves have. At some point people will feel more secure about their jobs and the mortgages will get easier to get and prices will go up again. It may be only months before there is some recovery, but in several areas- as you suggest- it may be many years before those prices go back up to where they were a couple of years ago.

You can get a goregous mansion in Southern Colorado for around $320,000 on a lake. Average price for a home though is around $130,000