Is 2009 The Best Time To Purchase A House
Sep 2, 2009 Real Estate
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The real estate market and the economy continues to fall. In recent months, credible organizations have reported that the number of houses sold has increased for the first time in several years. Does this mean that the housing market has finally bottomed and that now is a good time to buy a home?
Let us examine further the statistics on houses sold. Out of all houses sold, 10.8% were first time home buyers. Further, the average sales per real estate agent has rose for the first time in many months. In certain areas of the U.S., home prices have even increased a little. People searching for a house rose from 180 per broker to 208. The number of properties each broker was selling rose from 84 to 113. The average amount of sales per broker rose from 3 to 8.
Everyone is now wondering if 2009 is the year to buy a house. In a recent survey of more than 55 real estate analysts, 60% believe that 2009 is the year to buy a house. Probably the single most important factor to look at when speaking about home sales is interest rates. The 60% of analysts who believe now is a good time to buy a house also believe that interest rates will not be raised until sometime in 2010. It is both low prices and low interest rates (borrowing rates) that will pull more buyers into the housing market.
40% of industry analysts surveyed feel that it is too early to buy a house. They believe that the price of houses will continue to drop. The reason they give is that unemployment will continue to remain high. Even more workers will worry about job security. The banks will continue to reduce credit lines and make fewer home loans. Capital Economics forecasts home prices to fall another 20% before a bottom is reached in late 2009 and early 2010. A small amount of extreme analysts expect home prices to fall all of 2009, 2010, 2011, 2012, 2013 and finally bottom in 2014.
It is my opinion that you should not feel rushed into buying a house right now. You still have plenty of time. Remember, the economy is still in a recession. Big ticket items like homes and cars are the first to drop in any recession. What makes this recession worse is that banks are not lending as much money as they typically do in a recession. People are continuing to be laid off as evidenced by the rising unemployment rate. Homes continue to go into default at an increasing rate. All of these negative factors will continue to make the demand for houses be very low which means a huge supply of unsold homes will remain on the market for many months to come.
The idea that a house is a good investment continues to be called into question as house prices fall. The housing market currently favors very low prices and homes that are priced to match the market valuation will be sold quickly. There are good deals on homes in 2009, but one may find even better deals later in 2009 and into 2010.
I hope you find this information helpful in deciding if you should buy a house. If you own property in Fresno California and are looking for a property management company see Fresno property management. If you are a renter looking for the best deals on apartments in Fresno, see apartments for rent in Fresno CA
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