US Real Estate Expected to Fall Another 14.5%
The US Real Estate is expected to roll back another 14.5%.
Should you invest in real estate? In fact, should you invest anywhere in the world right now?
Despite the bailout of American Banks by the Obama Administration, it is feared that may not be enough says Yale Proffessor Of Economics Robert Shuller.
When the “Market” predicts the real estate prices will still retract almost 15%, what would the regular real estate investor or would be real estate buyer do? Personally, I’d stay back and ride it out. Why risk my good credit and hard earned money? In the absence of positive new economic news, the general market remains lagging. Potential buyers and investors will likely simply hold back country wide based on such predictions. Here we have the makings of a self fulfilling prophesy. Read more from Tim Middleton…
Now, on the question of should investors in other countries invest at all.
Let’s take Canada for instance. Canada, just across the border from the real estate carnage of the past 2 years have not been as devastated. But then comes news that Canadians in general are declaring bankruptcy in record numbers. Add to the downbeat American outlook and you bet some people will hold back.
The Toronto Spring market was encouraging but what about the rest of the year and for that matter, the rest of the country? I doubt this actually reflects the sentiment for much of Canada. So we may have that oh, so familiar two tier real estate market. The smaller towns, cities and outlying areas away from the large populaton centres will have a fall in price but the big cities will still enjoy a relatively stable market.
What about in other financial centres?
Past tradition follows the US outlook in real estate and the stock market performance. And in Singapore and Hong Kong investors remain jittery. Prices tending to fall more quickly than they rise. However, what is curious is investors tend to favour stocks and investible paper largely for their liquidity as opposed to low interest rate mortgages and getting tied in for the long term.
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14.5% down over the next 18 months with RE level for the following 36 months.