Here is an excellent analysis by real estate analyst Dean Baker who essentially says the same thing I have been telling you here in the blog and in my other writings for years.
The U.S. residential housing market is still overvalued and the optimists who are jumping in and buying all these foreclosure homes are making a big mistake. I see lots of cheerleading on these real estate markets but very little genuine logic as to why its a good time to buy. Lower prices alone does not mean a bargain.
I see NO catalysts, NONE, that will lift housing prices higher for at least the next two or three years.
I see LOTS of reasons why prices can still fall.
Dean Baker was right on the housing price bubble (like I was) and his views should be respected once again here.
Robert J. Abalos, Esq.
As I have written for years, the traditional sprawl suburban subdivision development model is doomed.
Educated white collar professionals who have been the target market for most suburban development since the 1950s are tired of long commutes on congested roads into their workplaces. Along with all the daily hassles comes declining public schools, higher property taxes, fewer social services, and quite frankly, not a whole lot to do on weekends or at night.
Every suburb I have been studying in the United States for investment is becoming less "white" (for lack of a better term), poorer, with a declining property tax base. At the same time the urban core near these suburbs is growing.
This article from the Associated Press confirms this trend I have been writing about since 2004.
I will be having much more to say about this trend and what it means for homebuilders and developers in the near future.
Robert J. Abalos, Esq.
