4/11/2006

Real estate slowing down

As I read this article I was slightly disappointed. I am probably in a similar situtation to most graduating students who are planning on selling their homes and moving in the next year. This article states that 2006 will be a slower year for real estate and the trend will continue. One of the reasons for this is that mortgage rates are expected to climb. Another fact I am not too happy about. I guess these are trends I and other students will have to live with.

4 comments:

Cole said...

The housing market is a funny thing. One's view of the market depends on if they are buying or selling a house. It has been great for sellers for sometime now. However, I think almost everyone has expected a slow down. This may not be such a bad situation for you. Even though you don't sell your house as fast or for as much, may be you will get a better price on the buying end.

Blake said...

I agree with Cole's comment. While I don't think there is going to be any dramatic slowdown, the idea of perhaps being able to afford a home sometime in the relative distant future of my lifetime is very appealing to me. As it stands now, I don't think such a lofty dream could actually be a reality. It will be interesting to see what the future ultimately has in store.

rico said...

One factor that needs to be considered is that Utah is still relatively cheap compared to coastal states. The whole reason that it is slowing down is that short-term investors aren't seeing huge gains anymore. But Southern Utah is now known all over the U.S., so as far as prices dropping back down to affordable, it's not going to happen.

Dr. Tufte said...

-1 on Will's post for a sentence fragment.

Cole: all peoples' views of all markets depend on whether they are a buyer or a seller.

There is a tradeoff missed in these discussions. If you are going to benefit from rising prices, you will lose out on housing consumption you might have gotten in a cheaper market. This tends to smooth out the problems discussed in the article.