When it comes to the housing recovery, experts initially predicted a “V,” in which prices would fall and soon recover. Then there was a debate about whether it would be a “U,” where prices took a little longer to come back up, or a “W,” with prices dropping, rising, dropping and rising again.
According to Steve Cook of Real Estate Economy Watch and guest real estate writer at the Equifax Personal Finance Blog, experts are throwing around another letter now, an “L.” Perhaps a nicer way of saying “flatline,” the L scenario predicts prices falling and staying low for an extended period of time. This will make Atlanta real estate affordable for some time for new home buyers and others just looking for great buy on a foreclosure or a new home in one of the fabulous Atlanta Communities found in this blog.
Cook moves beyond alphabet soup to introduce us to another concept in his article, “Housing Price Predictions: When Will Prices Rise?” Fishing. Citing Scott Sambucci of Altos Research, Cook explains the concept of a “Catfish Recovery.” Housing prices seem to be mimicking the action of the bottom-feeder fish that can’t quite decide whether to stay up or down or even which direction to swim.
Cook goes on to describe some progress in the foreclosure market. Unfortunately, he also describes a continuing lack of interest from buyers, even in the once-busy spring and summer seasons. He reports that experts are looking at all the numbers and lowering their expectations for recovery.
Here’s hoping the experts are mistaken – as they have been before. Take a look at Cook’s article at the Equifax Personal Finance Blog. What kind of fish you think Atlanta real estate has become. Are we bottom feeders? Or maybe you think we’re salmon swimming upstream? Or sharks ready to attack? Go crazy with the fish metaphors and let us know what you think.