Well today finally did it. After all the wrangling about Greece it was Germany that collapsed the Euro http://www.belfasttelegraph.co.uk/business/business-news/german-shortsell-ban-sends-markets–tumbling-14813120.html
Germany stopped short selling, and the world gasped because those shorts have been the hedge on corporate losses. It’s an accounting trick that makes money even when you are losing money. Venezuela also stopped that type of trading with Chavez claiming some plot against him. Then today the United States Senate passed Banking Reform http://www1.voanews.com/english/news/usa/Senate-Passes-Financial-Reform-Legislation-94548609.html
If you put in a request I’ll explain it all, but right now it’s kind of like describing a train wreck that took 12 years to crash. All that matters is what you control today that is tangible. Is your property what you want, can you afford to pay it off, and how much value can you afford to lose?
If you are buying into this Real Estate market place keep in mind that rents will be going down as well as housing prices. People will share before they will over pay you for the privilege of paying your mortgage.
The good news is that we will finally see a housing unit price correction. Those foreclosures must be getting pretty ripe by now. Some, especially in the South East, are rotting as they sit. Banks, with the next round of legislation, may just start dumping properties onto the already shakey Real Estate market.
It will depend on how this all gets spun, but I would suspect that even with the now lower than “Historic” lows of interest rates in the 3%s many people will panic, and pull the purchase they made for the $8K tax credit. That should put further pressure on housing prices. Just be patient because we are very close to having, at least, Real Estate sorted out in the consumers favor.
Remember bad news is good news for Real Estate purchases.
