This is probably one of the most frequently asked questions...when will the housing market crisis be over? The answer to the question --- no one really knows. Financial institutions, the government, and others in the real estate are working feverishly to work through the problem...and it will take time. It took time for us to work ourselves into this situation (with subprime loans being a major culprit), and will take time to get out of it.
The industry went too far in loosening credit, the result being that many home buyers found themselves in homes they simply could not afford. Now the pendulum has swung the other way, and credit policies are very stringent, restricting buying power for those who are good candidates for home ownership.
One of the most promising financing alternatives at present is the FHA loan which offers a low down payment to home buyers with government backing of the loan. There are restrictions to these loans, but their popularity is growing. Perhaps as much as 30-40 percent of the South Florida market has secured an FHA loan.
As we work to rid ourselves of the subprime crisis, it will take time. Reasonable estimates speculate another 12-20 months before real estate is again on an even keel. The 'boom' which we experienced in the past will in all probability not be seen again....realistically, it shouldn't be.
Questions/Comments, I would love to hear from you!
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