Household formation is a reflection of population growth and housing affordability which has drastically dropped since 2007, reaching about 300,000 to 500,000 per year. Historically, the rate is about 1.25 million.

Home prices will likely see a minor appreciation this year (that’s after falling 3 to 4 percent through March), Barclays Capital estimates.

Some predict appreciation to be 1% this year, and for 2013 & 2014, followed by 2 percent to 3 percent appreciation levels. But to reach those goals, the housing supply needs to continue to shrink first.

The big problem is the upcoming foreclosures, and Short Sales which could hold prices down and in some markets push them further down.

In my opinion, if you have a stable job now is the time to buy. If you're contemplating downsizing, now is the time to sell and buy. If you want to buy a property and rent it, now is the time to buy. If you want to buy an expensive home or a second home and your finances are at the edge, then I think you should wait.

The real estate market will improve, but we have alot of economic issues to work through.

If you're thinking about making your home purchase go ahead, just don't over extend you finances.

Don Keeton donkeeton@remax.net 402-496-3700