Glimmers of Hope in the Housing Market?

By Mark J. Donovan

Though home prices have continued to slide over the past 4 months the slope of the slide is showing signs of flattening. In fact, some housing markets are actually anticipating a slight rise in home prices over the next year. See “Where Home Prices are Rising”.

About 75% of the nation’s homes are expected to fall another 5% or less over the next year. A far cry from the 30 to 50% declines the housing market has already racked up over the past few years. If indeed home prices have nearly bottomed out, it may be a wise move to take advantage of the federal tax credits and low interest rates while you still can. If there is one thing certain in life, its change. With a housing market that has been going down for the past few years, one thing is certain, there is pent up demand. There are homeowners who want to buy larger homes, employees looking to relocate for job prospects, and first time homebuyers awaiting signs for a bottom. Like most bull and bear markets, it’s hard to see them coming until after they have occurred, and it is nearly impossible to time bottom entries. The important things to remember is that markets change and to look at the big picture in aggregate. Home prices are at their lowest in a decade or more, interest rates are at all time lows, and the government is giving out free home buyer tax credits.

Christmas doesn’t come very often in the housing market so grab your gifts while you still can!