Housing Crash
March 19, 2008
Mort Zuckerman, the real estate billionaire and owner of "U.S. News & World Report," was interviewed on NBC Evening News on March 17. He said he thinks we are in inning 4 of a 9-inning recession. It will be the worst one in his lifetime, he says. It will last two years.
Normal: 11 months.
He blames the housing market, which he says was a once-in-a-century bubble.
Applying these observations means that home prices are going to fall. Sometime in late 2009 or early 2010, there will be panic in the housing markets. Sellers will be desperate to sell.
Over the next two years, you would be wise to start shopping for two homes to rent out. Don't buy unless you spot a truly desperate seller. Just shop. Get a feeling for the local market.
Get your money into a local bank. That bank will be sitting on REO properties in 2009: real estate owned (foreclosed). At some point, you will be able to buy one for no money down. The bank will do anything to get the house off its books. Your deposit will show you have money.
There will be great bargains in real estate. Decide today that you will own two more homes two years from now.
Visit John Schaub's site: www.johnschaub.com. Order his books. He moderates my real estate forum. He answers questions. He owns and manages many homes.