Huntington Beach, CA: Many notable economists believe that we have not seen the bottom of the housing market. That goes for the entire country, not just Orange County. With interest rates at historic lows history, it can still be an ideal time to buy as prices would need to drop 30% or more if interest rates rise to 7.5% to get the same affordability.

However, if they do drop another 20% or more, which is within the range that some of these economists think is possible (some think it could be as much as 30%), today’s buyer may still be ok with regard to the affordability factor, but those of you who needed that 20%+ for retirement just saw it go to “money heaven”. For all practical purposes, with those in their 60’s and beyond, it is money gone forever!

Remember that I am talking primarily about personal residences here. If you have positive cash flow income property the analysis is a little different. The community you live in will also be a significant factor in how much any further price drop will affect you. Some neighborhoods will continue to be more affected than others. Some may not decline any more at all.

A 20% drop would mean a $120,000 loss of retirement funds if you have $600,000 in equity! If you don’t know how much equity you may have and want to know what this could mean for you, call me and I will be happy to help you figure it out.

Of course the only sure fire way to get your equity out so that you can put it where it will be safe is to sell your home before the prices drop further.

Because most of us are not an economists and don’t have a crystal ball, I thought I would provide you a couple resources to see for yourself what some of the smart guys are saying about all this.

Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown – Second Edition – Can also go to: Wiedemer (Author), Robert A. Wiedemer (Author), Cindy S. Spitzer (Author)

American Apocalypse Video- Weiss Research Group Report
Go to: www.

I would welcome your thoughts and comments. Even if you are not in the Southern California area, please feel free to call or email me anytime.