You are here

Wannabe home buyers welcome slump, look for opportunities

June 9, 2007

Meanwhile, price gains of just 1.4 percent or less were reported in New York, Chicago and Washington, D.C. Those numbers have left many people trying to "time" the market to take advantage of the slump. But experts said that can be risky because there is little consensus on how long the current doldrums might last.

In addition, the market forces that helped drive the housing boom - affordable financing and the alluring prospect of escalating home values - are no longer a given. Potential price breaks could be wiped out if interest rates rise any higher.

"In general, it is very difficult to time the market," said Raphael Bostic, associate director of the University of Southern California's Lusk Center for Real Estate.

"The real problem with that is you don't know when the floor is until after it's passed. If the floor is right now, you missed it," he said.