Economist say the worst of the housing bust is over. According to Reuters, "U.S. home prices are nearing the end of a three-year slump and should rise in 2010:. The same report, however, stated though the overall economy can rebound even if the housing market does not as a housing rebound is not needed to end to the economic slide.
Most people think we will bottom out and start to see an upward swing Oct. - Dec. Anecdotal reports suggest that low mortgage rates and an $8,000 first-time home-buyer credit (set to end soon) are coaxing buyers back into the market.
I don't watch NBC,CNBC, MSN, CNN, or CBS and try to rely on local subject matter experts. While, speaking with a local lender he told me that mortgage applications for his company were on the rise. However, 1/2 of those he has received are in relation to refinancing. He said foreclosures, he's finding are still high overall and set to rise again as banks begin to move on the ever increasing delinquent homeowner, (whereas that actually could boost home sales and skew the rosy outlook but at the same time send us back into another boom of sorts). And, with the jobless rate increasing, mortgage defaults aren't likely to end very soon.
Virginia's outlook: Richmond is forcast to hit 16.4% deflation by the end of the year (one of the hardest hit) while SW Virginia/Roanoke area will see an overall lower 12.8%. The below falling home price graph indicates VA isn't even registering..which is great news!
This bubble/rebound varies per locality and we all have to address it as such. Pay no attention to the scuttle of the day, although we get giddy when we hear it's getting better. We know it'll get better, we've all been on this roller coaster before. The VAR put out an article on Have we reached the bottom yet and you should be able to view it at the VAR website varealtor.com
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