It's a buyer's maket in US real estate - that's what I've been reading in a few blogs and mini-articles scattered across the web. I'm seeing this observation in articles coming from realtors and other real estate professionals based in Florida, Texas, California, Arizona, Georgia, Nevada, and Tenessee. They all talk about the amazing and glorious opportunities in this buyer's market.
Bull twaddle.
The skinny is this: the markets in these areas are crashing. Buy now and watch the value of your assets decline. It's a buyer's market only because the buyer can pick and choose. Buyers are in the drivers seat, if they are cool-headed enough not to pay too much.
Realistically, last year's prices mean absolutely nothing. They inflated by speculation, loose credit, and poor judgement. If you want to look at the "real" value of real estate in the main southern US states, look at prices in 2002, or even 1997. Paying even close to current asking prices is likely to be a losing strategy.
If you are an investor, or just getting into real estate investing, beware this buyer's market. I've written here and elsewhere about some the nasty sides to this downturn - such as the "hidden" supply of foreclosed homes that are being held off the market. Eventually things are going to have to give and values will drop to where they should be.
If you don't care about the value of your assets, or find some pleasure in losing cash or gaining tax breaks, then your need to get in right now. After all, house prices in US cities dropped at least 10 percent in January (The Economist, March 29th, 2008) - you need to jump on the losing side right away. You can still realize a 30% loss, at least, in many areas.
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