Check Out The Shadow Inventory

There are over 3,000,000 homes lurking in the shadows. That might not be so bad (even though it really is bad) if there weren't new ones being added to that inventory every day. Folks, we are still a long way from a stable housing market!

The Atlantic has posted the article Chart of the Day: The Housing Market Is Worse Than You Think. They start out by asking the question: Has the state of the housing market gotten better or worse since the first quarter of 2009?" And then show this graph...

From the chart, you can clearly see that there is a huge supply of shadow inventory and very little loans being sold. At this rate it will take years for housing to be solid again.

So does this mean you shouldn't buy a home right now? In most cases I would say you should wait. But it depends on a few things:

Where you live: Yes there are some areas where you can safely buy a home and not lose money...but there's not many places like that in the country...Ah! But there are in other countries. Farmland can be had for much less in parts of South America than here in the U.S.
Do you have the knowledge, ability and time to search out and find a real bargain of a home? There are some very good deals out there. A good deal to me is 50% below market value. Remember distressed homes typically sell for 10-25% less than a typical resale. And if housing has the possibility of falling another 10-25%, then you want to be in position where you don't lose money on your home.
You have the ability to pay cash.
You buy a home/property that produces wealth. That means a property where you can farm (even on a small scale can save and/or make you money) and have livestock (cows, chickens, goats, pigs, etc.) and where you can grow some crops.

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