A housing market rebound seems tenuous following the expiration of the home buyer tax credit, and consumer confidence remains weak due to lackluster employment, but David Stiff, chief economist at Fiserv, says the bottom is near. Home prices in the U.S. have declined 29.5 percent over the past four years, according to the Fiserv Case-Shiller Indexes. Stiff says prices should form a trough early next year, when median prices will be down an estimated 32.9 percent from the 2006 peak.
By early 2014, they will have climbed about 7.2 percent from 2010 levels, according to the indexes. Fiserv and Moody's Economy.com base the housing forecast on factors that include income growth, demographic trends, unemployment rates, foreclosure rates, and construction costs. That is an average increase of 1.8% per year. Not a lot but a nice small increase, Steady,and an upward movement however small but still a positive direction.
In my opinion, this is a good way to do it. A home should be only a home, a place you can call your own. Make your changes and upgrades that you like, and can afford. Do them for you. Then when you can afford to move up or down, you sell for a mild modest 1.8% increase per year and not be greedy. Everyone is happy, new buyers can afford to buy, you are able to afford a move up and the economy is not devastated by unscrupulous individuals trying to gouge and misrepresent to make a buck, as happened with the negAM loans and no qualifier loans,etc...
www.NewportCoastRealEstateTeam.com
Marlene Dietrich, Tony & Mike
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