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Price with appreciate less than 5% or stagnate due to higher rates. We're at the limits of affordability in many areas. Rent might continues to inch up due to lack of supply in good or above average areas with good schools. Beyond 2015, it could get ugly. But I don't see 2008 type crash since it was due to all those exotic loans. We don't have that any more.
Even during 2008/2009 rent in good/okay areas many times decline very little to staying flat. We're talking Cali here not Cleveland. Rent will put a floor on RE prices due to low construction rates and low investment return rates. Can't afford rent? How about families/generations sharing or pooling resources. Might be crowded but then this is California and we're packing them like sardines in some places.
liberals and homos.
And I was RIGHT!
Ceffer
2017 Oct 19, 8:02pm
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My prediction folks is that prices will come down in late 2015 or otherwise crash. I'm talking about rents and houses alike.
Why I see it that way? I see it that way when I look at the rent prices in our neighborhood. When it costs $3,000 for a family to rent, something has to give. Very few folks out here make that kind of money to pay, hence it won't last. This was the case last time real estate crashed, prices were higher than folks could pay. Adding to that higher costs of living due to drought and other economic factors, it only makes sense for prices to retreat.
My recommendation is to stay away from RE stocks and temporarily move into safer alternatives.
#housing