That’s the headline CNN Money is running with today. Pretty bold statement but it certainly does seem to be the case.
Stuart Hoffman, chief economist for PNC Financial Services (PNC,Fortune 500), said he expects home prices to flatten out by the third quarter and start climbing by next year.
A number of factors will help bolster the housing market, he said, including a decline in the number of foreclosures and continued job growth. In addition, homebuyers will have better access to mortgages as they get their finances in order and improve their credit scores.
Some economists, like Trulia’s Jed Kolko, expect home prices to pick up even more quickly. Trulia’s data shows that the national average for asking prices already increased 1.4% in the first quarter of 2012, compared with the last three months of 2011.
The combination of low prices and low interests rates looks improbable to stay for much longer.
Of course this article is talking about national numbers. Which in real estate terms is not that useful. Scottsdale is already showing a turn around in the market, much more so than places that didn’t crash so hard in the first place.
If you are buying a home with financing the chances of mortgages rates increasing would be the most significant risk to affordability.
In our market while now is a great time to buy from an affordability stand point it is a frustrating time for buyers. The reason for this is the low inventories we are dealing with. There are just not that many pretty homes for sale, and the nice ones really are getting swooped on fast.
With inventory at rock bottom finding the perfect home is tough. But hopefully interest rates will stay at these lower levels long enough for the fall listing season to get underway.