The Near-Future of Real Estate and Gold Coins
Spring has sprung. That time for romance, gardening, cleaning, fishing, dreaming and, oh yeah, house hunting.
Spring is typically when dissatisfaction over one’s living situation has reached it zenith and it seems right, after a long winter indoors, to cast one’s eyes elsewhere.
That being the pattern, there doesn’t appear to be the usual flurry of house hunting so far this 2010 spring.
Maybe most Americans haven’t quite rolled out of hibernation just yet. Or maybe it has something to do with the lingering winter weather still out there.
Or maybe people are just waiting for real estate prices to drop as far as they’re going to drop first. That’s called…
REAL ESTATE DEFLATION
If you know that the price is falling on something you want to buy, why buy it now? Why not just wait until you’re convinced that the price has more or less stopped falling? That’s only deflation common sense, and maybe what’s holding up real estate today.
We should also be on the lookout for…
ANOTHER ROUND OF RESETS,
MODIFICATIONS AND FORECLOSURES
The average U.S. home price will fall by about 6% by September 2011, according to a joint report pulled together by Fiserv and Moody's Economy.com.
What’s behind these falling prices?
Most Americans believe that the “resetting” of adjustable rate mortgages (ARMs) is behind us. Not so. In fact, sadly enough, we probably still have quite a way to go. Resets will likely peak somewhere around September of 2011.
That’s when, chances are, another round of foreclosures will also take place. Then there's commercial real estate. About $1.4 trillion in commercial real estae loans are due for refinancing between now and 2014. That's scary.
So what does this all add up to?Likely more bailouts, more printed money and fule for hyperinflation.Just one more reason gold demand will skyrocket as more and more people add a gold coin to their savings and retirement accounts.
We already see how experts have re-drawn the gold charts to include the prospects of $2000 gold.
Be prepared!Spring hasn't blossomed like it used to.