Housing price has 8%-15% downside to go from now.

High end market will drop more than low end market. Currently high end market, given that potential buyers need a jumbo loan, has an inventory equivalent of 41 months of sales while low end market has only 7-8 months inventory.

Clearly it is difficult to get a jumbo loan since no government agency wants to back up such loan.

Even though low end market shows many signs of recovery, high end market will cap its recovery.

That is why I am saying risk is essentially on the downside. Financing is going to be less available if government stops backing up mortgage.

Be patient, save cash and jump in when housing hit its bottom.

所有跟帖： 

• Indeed. -worriedmom1- ♀ (91 bytes) () 11/26/2009 postreply 09:37:20

• After the market hit the bottom, it will be flat for some years -worriedmom1- ♀ (258 bytes) () 11/26/2009 postreply 09:45:50