I’m not saying that these places are completely insusceptible, but they’re less affected. Ultimately it’s consumer confidence that will turn the tide. Downtown, we’re beginning to see more and more buyer’s taking advantage of deals.

Here are a few posts I just wrote about the market and why I think things are changing.

Alan Nevin Says Buy
Is it a Good Time to Buy?

Anything that is not trading with the above listed criteria, will simply crash and burn until it does. We haven’t seen anything yet. Just wait until the majority of the loans written in the last five years come due to re-set. It starts over the next few months, coincidentally at the same time as LIBOR has risen. Libor at 5 plus margin of 2.5 = foreclosure tidal wave, the likes of which we have not even begun to experience. There is no more justification for inflated prices except public confidence that “higher end homes are more stable”. Once eroded, we’ll see the second wave down, and then we’ll start to pick up the pieces.

Thanks for the feedback. I do think parts of Downtown will be hit harder in the next year or so – primarily in the entry level buildings. Electra is the exception I think – if you’re not familiar with Electra, it’s Downtown’s newest and tallest high rise. Keep an eye on these prices….

But for the most past, I think buying now is a pretty safe bet – especially if you find the place you really love. It’s impossible to pinpoint the bottom and in my opinion, now is definitely close enough.

Tim