Thursday, November 5, 2009
2010: Worst Time to Buy a House
Posted by: Christina Dove
According to a study done by PriceWaterHouseCoopers, U.S. commercial property prices are likely to hit bottom next year after falling more than 40 percent from their 2007 peaks. This does not have a very good outlook for 2010 home buyers, who are going to find it very difficult to get a loan or any type of credit from banks. In addition, this is going to put a huge strain on those who are struggling to maintain ownership of their home and are falling behind on payments.
The housing boom of 2006-2007 is to blame for this housing market catastrophe. Too many people were getting loans that they were not able to afford and living in houses that were way above their means. Just because the bank allowed them to get a loan for that much, does not mean it was the most financially wise thing to do. Now these people are paying the price as the value of their homes is decreasing as we speak. People should have known that is was not wise to be paying for a mortgage that was worth well above what their house was worth.
The only good thing about this housing crisis is that those with the cash are able to buy some great properties at an all-time low price. Some investors are taking advantage of those who have had to foreclose their homes and those homes that have been repossessed by the bank and resold. However, this is not the case for many people who are strapped for extra cash in this economic crisis and are finding it hard to even afford the property that they are already living in. The housing market will always be going through ups and downs, but it seems that 2010 will still be a down year for the housing market and people are going to have a lot of trouble selling their homes for what they paid for them.