Housing Market On the Way Up
The new year shows signs of an improving housing market as the U.S. economy continues on a saw-tooth path to recovery. Although there are economists projecting housing prices to drop further in certain parts of the country, aided by discounted distressed property sales, even these prices are expected to rebound later in the year and continue into 2013. In other words, right now mortgage rates and housing prices are providing exceptional opportunities, but don’t expect these deals to continue forever.
Factors that continue to hamper a speedier recovery are consumer confidence, job-growth uncertainty and strict lending standards that keep many otherwise well-qualified buyers from financing a home purchase. The good news is that consumer confidence seems to be improving according to a report released by Fannie Mae on December 7, which says that consumers are beginning to realize that home prices may have stabilizing and that priced will begin to rise. This is welcome information since much of our country’s economic growth and health rests on consumer confidence. As this confidence grows, even stronger home sales and higher prices can be expected.
Some consumers prefer to wait to see what is going to happen in the markets here and abroad. However, waiting could mean missing out on some of the best opportunities imaginable. With steadily increasing sales and record-breaking affordability, right now is the best time to buy or sell a home.
Sources: Fiserv, Fannie Mae, Bankrate.com