With the current issues with financing, and the amount of people getting their applications rejected, new rules form Fannie and Freddie, and the deep financial hole that FHA is facing, I got to think today about what the financing situation will be for people wanting to buy an owner-occupied residence in the near future.
If analysts' predictions about FHA, they will need a huge cash infusion by the federal government to be able to keep helping first time home buyers. The expectations go anywhere frm 18 to 36 months before it implodes. How true is it? no real idea, but these speculations usually start when it is already too late.
If these factors are still issues for buyers then the market has nowhere else to go than lower.
What do you think will be the new reality for the owner occupied financing market?
Do you agree with my assessment of a future of lower prices in the next 2-5 years? no? why not?
And then, after having this conversation started --and hopefully the experts will chime in here-- I'd like to address my favorite question, How to profit from this?
How to "short" the SFH market?
If analysts' predictions about FHA, they will need a huge cash infusion by the federal government to be able to keep helping first time home buyers. The expectations go anywhere frm 18 to 36 months before it implodes. How true is it? no real idea, but these speculations usually start when it is already too late.
If these factors are still issues for buyers then the market has nowhere else to go than lower.
What do you think will be the new reality for the owner occupied financing market?
Do you agree with my assessment of a future of lower prices in the next 2-5 years? no? why not?
And then, after having this conversation started --and hopefully the experts will chime in here-- I'd like to address my favorite question, How to profit from this?
How to "short" the SFH market?
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