A Housing nightmare, can it happen again?

Have we really turned the corner on housing since the 2006 , in Tucson- yes? Some neighborhoods have  certainly recovered and some NEVER will go up that high again. High prices were on paper only and in channels of loan mortgages rather than in value. Always be aware of the difference.  Even though you have a lot of positive housing numbers, rents high, endless tenants available, but housing can be sensitive to politics.

Consider CHOP zone ,in Seattle, inner city land taken over by protesters, you as the owner still pay  ownership costs – taxes, insurance, interest mortgage, and repair costs, however you have NO access. Just like that your value went down- can it recover?  It depends on a lot of outside factors you have no control over- remember you are still paying. Owning real estate  is serious business ,you still need to buy  property from an accounting  perspective and always have emergency funds in reserve.

Fourteen years ago the worst economic housing  pattern occurred in history, without anyone realizing it.  The collapse of the U.S. housing market, has now recovered from the  14 year low , but in 20 states it has begun a slow tick upward from .47% to 3 %   that is something to watch, especially the high priced rental market. Watch the rental market for the next 6 months- does it stabilize as people go back to work. Remember owners have to pay mortgages/repairs even as tenants are allowed to default.

Good points to remember: only buy what you can afford- don’t speculate. Buy CASH flow properties, remember taxes , insurance and utilities continue to go up. Repairs and good maintenance cost money, and must be done to keep up value. Remember rental properties tend to go down before single family- pockets of weaknesses will begin to occur.

Be aware buying a property takes a lot of time, it can be  affected by things you can’t imagine and , pay attention to your local markets.