When will we reach the bottom?

Ardell called “We’re at the bottom…” in her post February 7th, 2009. We each have our idea of what the bottom is and in her area maybe we are at the bottom.  From a macro stand point, I feel we are far from the bottom. As I said in my comment to Ardell, I believe the bottom will be reached when an investor could come in and buy a home and receive about a 7% return on investment from  rents.

I am not claiming THIS will be a great time to become an investor, I am saying when someone can come in, buy a house at a price and then rent out that same house and receive a 7%(ish) return the bottom will be in sight.  As Ardell said, maybe that is in 2016, mayb not ever.

An EXTREME example of the bottom is being reached in Detroit as seen with investors coming in and buying up 1000s of houses at once. No matter what the economy is doing, everyone needs a place to stay.