When it comes to real estate the general sentiment appears to be that of putting 2009 in the past and looking forward to a brighter 2010. Looking at where we are and where we are headed as far as real estate goes will take us from the present into the future. Currently home values are affordable, because prices are low and interest rates are low. Both of these low levels add up to the fact that it is a great time to be a buyer when it comes to real estate.
Plus, the extension of the $ 8,000 tax credit for first time home buyers and the new $ 6,500 for existing home buyers has created a surge in home flipping for investors. Several flip and buy & hold investment properties exist for real estate investors.
Interest rates have been hovering at 5% or lower for the better part of the past year, a trend that cannot be expected to continue. As the market stabilizes more and the economy gets better, interest rates will rise. While home prices still may drop in many areas of the country, they will not drop much more. Areas that are less affected by foreclosures, short sales and REO properties are likely to level out faster than other areas due to the lack of distressed sales in their inventories. A rise in interest rates may bring real estate prices down to sell but the days of 20% and 30% decreases appear to be unlikely.
In a nutshell now is a great time to buy investement real estate, especially in the Philadelphia area, if you have been waiting for the right time to plunge into the market. Take advantage of low interest rates while they are here. It is a buyer's market now, it won't be forever.
For an interesting analysis of the real estate conditions and a forecast of 2010, by CNN Money, click here. I, along with other active investors that I know, believe the Philadelphia flip market is strong and will do well for this upcoming spring market.
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