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Originally Posted by Yakk
There seems to be a lack of tools to "short" the housing market. If I believe the price of real estate in an area will go down, is there anything I can purchase that will allow me to profit if I am right?
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Well you could cash out, lie low, and buy your house back later at a lower price.
I haven't looked at any numbers, but it sure seems like here in Miami the house prices are starting to level out after increasing by about 20-30% per year for the last five years or so. Plus there are more houses on the market than there were a couple years ago.
My guess is that as the interest rates start rising, the prices will level out and stop increasing for several years until the economy slowly comes into balance once again with the house prices. So that if you average out the rate of increase from 2000 to 2010, it will be fairly reasonable.
But what the hell do I know, I'm no economist . . . .
