Each Saturday the Echo Boom Bomb features a post impertinent to Echo Boomers.
Short answer: No.
In order for housing prices to rise, a few things would need to occur first:
1. Energy and food prices need to drop by large margins. Unless new technology is quickly developed, or Americans quickly adapt to higher prices, these high necessary costs will crunch American's wallets and make them reluctant to put down roots for a home. Add to that fact that many Americans worry that oil prices may climb as high as $5 or $6 a gallon. Do you think these people will buy homes if they expect future prices to be higher?
2. 72 million Echo Boomers need a much better financial standing.
3. A calm financial perspective shows up for people. Uncertainty is driving the market now: the price of gold and silver are moving up, not because they're worth a lot of money, but because some people are losing faith in fiat currencies. This, however, is driving even more uncertainty in the market and feeding the viscious cycle.
4. The Federal Reserve stops acting like capricious monkeys. Frankly, high oil and food prices can be thanked due to QEII. But here's the bad news for Americans thinking about buying a home: the Federal Reserve is considering QEIII. The question is just how high will gas and food be next year? Or the next year? The Federal Reserve is contributing to the uncertainty in the market.
5. Politicians find a budget plan that works. It doesn't matter which of the parties you like, all the budget plans are disasters. But these disastrous plans feed into the uncertainty. How can people prepare for their financial future when they don't know if their country will remain solvent in ten or twenty years?
I see none of those things happening any time soon; though only 2 or 3 need to occur in order to see housing prices begin to climb. However, if those five things continue, I expect housing prices to either stagnate or fall a little further.
Now, let's suppose you're an opportunist. If you plan to rent homes, now would be a good time to buy as many Echo Boomers will be renters. In the long run, you may even be able to sell some of those homes.