Greenspan Predicts Turnaround in Early 2009

It feels good to have Alan Greenspan back you up. In a recent article published in Emerging Markets magazine, Greenspan predicted the U.S. Housing Market would recover in the first half of 2009. He noted the slowing rate of home prices declining as a positive sign.

The increase in pending homes sales for August supported Greenspan’s (and my) claim. There comes a point when sales and demand (and confidence) will increase due to lower prices. Think about, if you could buy a house for a $1.45, wouldn’t everyone be a buyer? That situation was very, very, extreme and by no means an indication that houses will sell for a few bucks. Nevertheless, home prices are at recent lows but will begin to turnaround in 2009.

This is the bottom… buy while you can.