Housing prices will rally in a counter trend cyclical null move within a secular bear market and then fall apart because of innumerable foreclosures
Special Correspondent
Jan. 18, 2007

As we mentioned in India Daily. Housing market bottomed six months back. For the next nine to eighteen months, housing markets will rally. It can regain 62% of the grounds lost in the last fifteen months of housing bear market.

But this will also set the stage for the common people to lose money like never before. The bull rally will accompany frantic common people buying homes again wagering all that they have.

The builders will start building again. The land prices will soar. The investors will be back with their credit based purchasing power. The housing market this summer will go crazy as sellers get back their advantage.

Smart investors will download all their real estate in this rally and go short on the REITs. The bear market after that will be nasty and long. Price in the bear market will lose close to 80% of the value and will last close to twenty to thirty years.

The real estate market like any other investments follow sentiment waves. The gloom and doom is too much for the short term while everyone is bullish for the long term. Contrarians win in every market. You know now what the sentiment indicators are suggesting.

Housing prices will rally in a counter trend cyclical null move within a secular bear market and then fall apart because of innumerable foreclosures
Special Correspondent
The builders will start building again. The land prices will soar. The investors will be back with their credit based purchasing power. The housing market this summer will go crazy as sellers get back their advantage.
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