Yup, Alan. Here's something to consider, too. There hasn't been any serious erosion in the housing market yet.
Now, our local situation in San Diego might not be the norm - we have a severe housing shortage. But, still, you can see evidence of the process in motion.
Housing prices have stalled. They aren't going down yet, but they have stalled. At the same time, inventory is up and time-to-sale is up. It's more striking if you just make some common-sense observations: a year ago, there were no "for sale" signs on my block. Today, there are probably a dozen. (It is mostly condos in this area.) Now, these people are asking the high dollar for their properties. IMO, they are not going to get it - they are not being realistic, and the property is not moving.
Now, let's throw one more thing in here. A personal residence has to be held for 2 years in order to avoid capital gains tax on sale.
Think that one over a bit.
What can we expect to start happening about two years after the peak of the stock-market bubble?
Let me re-state that one.
What can we expect to START happening about two years after the peak of the stock-market bubble? |
