ROLLERCOASTER RIDE!!!

The residential real estate market went on quite a roller-coaster ride in the past decade, rising to mid-decade peaks only to fall into the trough it remains in as of late 2009. While it may seem like real estate prices will never rise again - just like it seemed that they would never stop rising earlier in the decade - the real estate market is, at its heart, cyclical, and what goes down is bound to rise again.

Many experts believe that the market will continue to fall through mid-2010 but will find a bottom by the end of the year. The exception: extremely distressed real estate markets in California, Nevada, Arizona and Florida, which are likely to continue to fall into 2011. In the longer term, a number of factors - including interest rates, foreclosures, currency valuations and unemployment rates - will determine how quickly home prices begin to appreciate again.

Is Home Equity Retirement Value Gone?

Moody's prediction could mean that hundreds of thousands of Americans may find it impossible to sell their houses without making payments to their banks to cover underwater home loans. In many parts of the country, which include large states like New York and Illinois, home prices will not rebound to 2006 levels until 2018 to 2022. In the states where prices have fallen the most values may not rebound until 2024, The prediction, if correct, means that Baby Boomers & even some of their older children may not be able to sell their home to help finance retirement.
Home equity loans will be out of the question. Some homeowners will have to give banks money to get out from under their houses, default because they cannot afford to sell their homes at a loss, or stay in homes that they no longer need. The housing crisis, it seems, still has at least 15 years to go and for some older Americans that is a lifetime.