The Real Estate Clock… My Predictions For The Market.
I am going to put on my psychic hat for a moment, leave stats at the door, and give you what I personally foresee for out local market in the next few years. I say local because there is no word more important in real estate than local.
My personal opinion is that the bottom of our market was around 6 months ago. That leaves now to still be a perfect time to purchase. Rates are still at a low I don’t expect to stay around much longer. However, I would imagine they would extent the lower rates a little longer than planned to keep the real estate market strong.
I believe this so much that I am considering purchasing a second home. I am not convinced that we have seen the last of price dips but this is irrelevant if you are not moving every 2-3 years. Potentially waiting to save 20k on a home with a 7% interest rate over a 5% rate actually costs you more (this is assuming values decline again).
I also foresee fewer foreclosures as time continues (even though there are very few). There are too many government programs and short sales looking to redeem this area of the market. These programs will continue for some time making your rental property a very attractive prospect for those looking to redeem their credit.
As to when the market will recover for those who purchased in 2004-2006 and kept their home… I am in agreement with Teresa Boardman that we could see recovery in our area of these values by 2012.
Again.. these are just my opinions, assuming our national economy doesn’t collapse in dept prior to these changes…
