I am watching an interview with the Chief Economist of the NAR. When asked if it might be a decade before the housing market recovers, he reminded us that it is probably true for those who bought at the peak, 2005, or who refinanced at the peak. People who are getting in the housing market now shouldn't expect to see much of a decrease, if fact, they should start to see a 3-5% increase. He feels that when the government incentive is over that the job market will improve and make up for any losses in sales there.
He does believe that interest rates will rise in the near future, though.
He said the high foreclosure rates in some areas are due to excess demand of the past, risky loans, and over supply because of over building.
He says there is a huge pent up demand for buying a home. He says that for many renters, this is a fantastic time to buy a home, but they are not buying. He also said our population is growing by about 3 million a year, but he said the sales are not correlating with those numbers.
My opinion is that this is the best time to buy a house in most people's lifetime, and for a vast number of people, they should sell their house and not wait. Both should buy or sell in February or March of 2010 for the best results.
Cathy Glass, http://www.CathyGlass.com
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