Crazy times we live in.... Home prices nationally leveling off, but in some areas they may still go down this year (prices will be different locally). This year many people hope will be the year of stabilization.
What should buyers and sellers do in the meantime? The economic message to both Buyers and Sellers, DON'T WAIT!!! (Especially in Hampton Roads, Virginia). Buyers can get a better rate before interest rates rise even more (around 3.75 in OCT-NOV to around 4.75 now, do the math) AND Sellers don't have to worry about a future price reduction!
Buyers, home prices may or may not go up or down on the home you like, however most common predictations are telling us that interest rates are going up!!! Rare times when both the Seller and the Buyer should be motivated to buy sooner rather than later.
In Hampton Roads, VA the latest "Old Dominion" (ODU) economic forecast predicts local home prices to drop 3-5% not so good news, but unemployment will go down from 7.4 to 7% - That's a positive sign!
Trying to buy your first home? MANY states have special programs for first time homebuyers (take advantage of that program while that government money lasts).
COMMON MARKET FACTORS FOR BUYERS AND SELLERS:
There are times when home prices go down and the Buyer could wait to buy the same home at a lower price, Common Result?
Sellers should be more motivated to sell sooner, Buyers can wait it out.
Times when home prices are rising, Common Result?
Buyers should be more motivated to buy sooner, Sellers sometimes wait it out.
Wait, what about the other factor INTEREST RATES!
If interest rates are rising?
Buyers should be more motivated to buyer sooner.
If they are falling
Buyer will have less pressure to close the deal!
If as a buyer you find the house you love, strike a good deal now (lower rates)!
If as a seller can get a decent offer, close deal now. There will be less buyers for your home as interest rates rise! Less buyers, a bigger price reduction. Supply Demand economics.