Not so fast. The jump in the market was due to some good news about the credit market, and on speculation of further interest rate cuts from the Fed. Both of these are good news for the real estate market, nationally. Loosening credit is the #1 thing holding back real estate sales, particularly for subprime borrowers. Yet, real estate is still local… within your own market there are pockets that will do better than others. Within every bad market is a bull market somewhere.
In the long run, population growth and limited supply in urban areas will keep prices inflated for real estate. Now, if I could just sell that darn condo…
