- Prices have fallen quite a bit, and more fixes are on the way
- Mortgage rates have fallen to historic lows.
- Housing Affordability Surges.
- Less new construction, leading to lesser inventories
- High energy costs that affected most people over the last year have fallen back to earth.
- The irresponsible buying habits are disappearing, leading to more responsible lending and borrowing.
- Government bailouts helping banks.
- Home Prices Rise in Some Metros, Buyers More Active in Other Areas
It is hard to predict exactly where the real estate market will be in the future just as much as it is hard to predict where the stock market will be headed. However, if you buy responsibly whiten your means in this down market, a home can be a long term investment, in addition to providing you shelter and tax breaks. As each person is in a unique situation with different circumstances, each person should evaluate their own situation when making such decisions. While a brand new expensive mansion will be an option for one person, a fire sale fixer upper with a big discount might be the option for another. Whichever option suits you best, there are far more options available to the home buyer today than to the buyers of yesterday.
Here are some articles that I've been reading recently
Hovnanian's CEO Foresees Housing Are We Drawing Near a Housing Bottom?
Can We Expect a Springtime Bounce in Housing Prices?
The Future of California's Housing: Shortage Ahead?
Homebuilders Agree: January Was A Good Month
Searching for a Housing Bottom? Look at New Sales Activity
Seeking Stabilization in the Housing Market? Look at This Chart
Housing Inventories Offer Positive News
New Home Market Inches Closer to Normal
A Nation of Mortgage Slaves