Real Estate Decline Looms

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Major housing markets over inflated; real estate investors urged to be cautious.

Housing markets in major cities are at risk for a sharp decline if the over inflated real estate market continues on its current path, warns, a major real estate investment web site.

“Home prices in major city markets continue to increase dramatically higher each year,” says Ben Innes-Ker, CEO and director of “This kind of growth cannot be sustained long term and many real estate investment experts feel the end of the current ‘bubble’ is closer than you might think.”

If a real estate decline is looming as many experts think, does that mean real estate investors should curtail their activities and look elsewhere for investment opportunities? Not necessarily, according to Innes-Ker. “The impending decline in real estate should not discourage smart real estate investors,” says Innes-Ker, “but it does illustrate the need to be cautious and position yourself to weather the changing market.” There are several ways to do this, according to Innes-Ker, such as reducing your debt load as much as possible and developing stockpiles of cash, lines of credit. Also, cultivate private lenders who will back you on your deals.

“The euphoric market of the last three years has pushed prices in major markets beyond all reason. The coming (interest) rate increases will push many homeowners past their financial breaking point. Late 2007 will be the beginning of one of the best buying opportunities in recent history, says Innes-Ker. “If you still have equity, cash it out now and hold it in cash equivalents until prices come back down again. This is the most basic strategy, and one of several we recommend to clients.”

The web site offers tips and advice for finding profitable real estate deals and strategies for profiting from those deals whether the market is good or bad. “It is pretty easy to do well in a growth market,” Innes-Ker says, “but you have to play your cards right in a declining market. There is still money to be made in real estate, you just need to know how and where to find it.”

Founded in 2003, is a leading provider of real estate investment expertise and training. The site offers a wide range of products and services designed to help investors make the most of real estate investing opportunities in nearly every kind of market.

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Ben Innes-ker
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