Posted by Chris on 14. December 2008 15:20
That is a great question. While no one has a crystal ball, I think that
eventually the housing market will pick back up. However, I wouldn't
expect to see the kind of appreciation that we experienced over the
last 10 years. Now that sub-prime, no doc or stated income and option
arm variable rate loans are essentially non-existent, the demand for
homes will be a fraction of what it was before. This will result in
"normal" appreciation vs. the double digit gains we were all used to.
If you are going to jump in now and are looking to flip a home, be
prepared to hang on to it for 12 to 24 months. Prices are low enough
that you should be able to rent a house and break even or have only a
slight negative cash flow.
Hope that helps, good luck.