Well the big question that everyone wants to know the answer to is.. Have we hit the bottom of this real estate market yet?
Your answer will most likely depend on who you ask...But I'm here to offer some good news. I believe we have finally can designate this year as the PERFECT STORM to buy real estate and take advantage of these STILL LOW interest rates...
Well I know what the interest rates are doing and I can guarantee you this.. They are slowly rising. After December 2010 came in gone. We found that our HISTORICAL LOW interest rates of the year were no longer. We can provide many reasons for the increase during that thirty day period. But, I'm not here to discuss just the rates. I can and will confirm that the rates are STILL very low and they are getting TEMPORARILY lower as the chaos in Egypt causes turmoil in our markets.
Well Reuters was nice enough to share their recent polling which includes 33 national economist that shared their outlook for the real estate market in 2011. This is what we found out:
Home prices are going to continue to slide before bottoming out in mid 2011. But will rise over two percent for the year as a whole. A fall out in home prices after the First Time Home Buyers Tax Credit expired was no surprise to any of us. The solution to our recovery in housing market solely depends on the job market, which has showed signs of stablizing and will recover over time.
Asking our economist polled during our Reuters survey: How much more do you expect the home prices to fall this year? More than the average answered: We expect a drop of 3.3% from where we are today over the next year.
But, economist also shared that for those homes that have lost over a third of their value during the worst times of this recession will recover (rise) 2.1% this year. That is important and interesting assumption that we believe will come true. There will be a spike in some home values once the stabilizationprocess finds it's footing. Most economists surveyed believed that home prices have reached their "Fair Market Value" today.
Home sales during the month of December provided a strong surge in sales mostly drivin by Arizona and the west part of the country.
The housing market is starting to show many signs of recovery. We are very far from what we are used too. But the healing process has begun and now may be the PERFECT STORM for First Time Home Buyers, Investors and those looking to buy that Second Home for retirement.
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