Where's Housing Headed?...

By L. Seals

According to CNN, the rental market is what is driving the current housing market. A friend and I were discussing this very situation the other day.

We all know how bad the housing crisis was. It's hard to miss how bad it currently is. Many home owners, because of job losses, or increases in mortgage rates could no longer afford their homes. This, we've all seen. Millions have been forced out of their homes.

However, a trend that has not yet fully taken hold; situations where home owners are simply walking away from their investments, have yet to be fully realized. This, I predict will turn the market around again. Where many forecasters see the buyers market in full swing, we have yet to see what will happen once the people who can actually afford their homes, decide to leave it behind because it just is not worth what it once was. This will cause more rental properties to be available, which will eventually create the real buyers market.

Rents would actually fall, because people do not want to pay more for rent than for a mortgage. This will cause the housing values to fall even lower, creating the future buyers market.

My question: Where do you think the housing market is headed, and why?...


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