Is the housing recession over?
I just ran across this article on Zillow. I can't say it any better than this article. I have felt that we are starting to see a bottoming out of home prices and home prices should stabilize throughout the end of the year. Good News!!
Unfortunately, I believe that the housing market will remain relatively flat for the next few years. I don't think we will be seeing any major appreciation in the next two to three years. Again the Zillow article explains it well. Real quick there are several factors in force.
- Foreclosures are still on the rise. We still have several years of the foreclosure inventory to sell off that are just going into default or are not in default yet.
- We have a large number of sellers sitting on the sidelines waiting for the market to improve to sell their home. Some of them just can't wait any longer.
- There are still a high percentage of homeowners that have negative equity on their home and are current on their mortgage, but a financial hardship could put them in a foreclosure situation.
- The general economy is still poor with unemployment still high.
So, yes, we will see the housing recession end.... but no we will not see any significant appreciation for several years. This is just my opinion and my position is one of cautious optimism.
Read the Zillow article.....
For buyer's this may be a good opportunity to jump into the home market. Prices are probably near there low. More importantly interest rates are extremely low. The thing to consider if you are buying in today's market is .......are you buying for the intermediate to long term. Buy a home that will suit your needs for at least five years. If your purchase is short term maybe you are better off renting.
Sellers, the time to sell is the time to sell. If you have pressing needs waiting for the market to turn around could leave you waiting a long time. If you have the equity and you have a need to sell..... downsizing, upsizing, relocation, etc..., you can't put your life on hold indefinitely. If you e a move up buyer you actually are better off buying in a down market than waiting for your house to appreciate. Don't forget that not only does your home appreciate so does the purchase on the other end. Check out this article on
the economics of buying up in a down market.
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This post was provided by Kevin Vitali of EXIT Group One Real Estate In Tewksbury MA. You can contact Kevin by email at kevin@kevinvitali.com or call 978-360-0422.
I pride myself in the quality of my work while helpingbuyers and sellers make dreams come true.
Real Estate Services in the northeast Massachusetts, around the Merrimack Valley, Southern New Hampshire including the towns of Andover, Billerica, Boxford, Chelmsford, Dracut, Georgetown, Groveland, Haverhill, Lawrence, Lowell, Merrimac, North Andover, Newbury, Newburyport, North Reading, Rowley, Tewksbury, Tyngsboro, Westford, Wilmington, West Newbury