Official Carleton H. Sheets^® Website

Just like you, I have been reading reports in the media that housing prices are not at the bottom yet. Whether this is true or not remains to be seen, but I continue to remain optimistic that the real estate market will turn around---it has always rebounded in the past, and I firmly believe that it will continue to do so in the future.

However, a colleague of mine at the Professional Education Institute emailed me a recent article.  It encompasses all of the factors that contributed to the downward spiral of the housing market---and offers logical estimates of where we are now and what is to come.

I'd like to highlight one projection that's mentioned in the article ... the estimate of foreclosures to come in 2009 through 2012. The reasoning behind these upcoming foreclosures? Well, of course, there's the affordability factor of mortgage payments when the rates adjust. And with tighter lending policies, will the homeowners be able to qualify---even if the mortgage is not in default? And we also have to look at mortgages with balloon payments coming due in the future. Will these properties hold their value for refinancing purposes? If prices continue to fall, I'd have to say "No." Keep in mind that balloon payments can be even more common in commercial mortgages, so this is yet another challenge to hit the commercial real estate sector.

Clearly, there are many layers to the housing crisis ... and one by one they keep bubbling to the surface. But as I mentioned before, the real estate market will rebound! And I still maintain that it's a great time to purchase property ... there are some wonderful deals out there, and some very motivated sellers just waiting for someone to come along with creative ways to buy their property.

What do you think? Are you waiting on the sidelines or are you taking advantage of this buyer's market?