Experts are now saying that San Diego has bottomed out and is beginning to show a glimmer of hope toward a recovery. The recovery will be difficult because of the high housing appreciation and constructionduring the boom and now has has massive foreclosures and construction shut downs. The low end market is recovering quicker than the high end market. It will be much slower for the homes above the the $700,000 mark.
The big question is will there be a rise in interest rates in March when the Federal Reserve stops buying mortgages from lenders? Some predictions say rates could increase anywhere from a half a point to one, even two points when the Federal Reserve exits the secondary mortgage market. Rates will deffinately become less affordable. Which will make purchases more difficult which in turn may hinder the recovering housing market. Right now, it seems like a wait and see type of environment. There are no clear cut predictions, only speculations, like there always is in real estate.
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