Marcus Ridgway's blog

Home prices won't rebound until jobs come back. But jobs won't come back until the housing mess gets fixed.

That's a problem because both the housing market and the broader economy are having trouble getting back in gear. Hiring is losing steam, and after home values hit a post-boom low, many are projecting further price declines.

"The economy can move forward without housing," said Mark Zandi, chief economist with Moody's Analytics. "But I don't think it can flourish and create enough jobs to bring down unemployment in a significant way without a revival of the housing market." ...

A double dip in the housing market is not surprising as we have been living off the ripple affect of the government's first time home buyers program for several months. Home prices continue their downward spiral with little relief in sight. Down over 5% from from last year we are now at levels lower than 2002.

Many people try to speculate a market bottom. This being said, we can examine a few important data points to get a 10,000 foot perspective which will shed light on the market as a whole. This market is a very strong BUYERS MARKET which allow investors to hit target returns on cash flow properties. Treehouse Group has been purchasing nearly 30 homes a month for investors and currently have in escrow several apartment buildings for investors. It's difficult to ignore purchasing well below replacement value and offering rents at a lower cost basis than competing assets.