If you have been wondering whether or not you should sell your home, the following information should answer your question.
This is an article by Peter Schiff “Dr. Doomsday” who is credited for predicting the recession down to the quarter and knowing many of the main factors that caused it for years. This article eludes to what I’ve been wondering for some time. What happens once the stimulus credit runs out December first? My interpretation is that while the slowdown of dropping prices in recent months is good, it’s artificial. It’s artificial because the bubble was artificial and the tax stimulus and low rates have temporarily slowed down the dropping prices. If prices were to take the normal path of increase, slightly above inflation for the last 10 years, as it had for the last 100, prices would be 34% less than what they are now.
If what he is predicting is correct, the prices could continue to drop even more so after the first time homebuyers stimulus expires. The positive side to the story is that there are still buyers and there always will be buyers. You may want to consider selling now while the weather is good, school is out, the rates are great, and the first timer tax stimulus is helping keep our inventory and prices under control.
Peter Schiff – TheStreet.com – Housing’s Big Picture Isn’t Pretty
**Please note that this is just a prediction and is not intended to cause panic. This blog is merely a reflection on the possiblities of the market.