Though no economists agree completely, the general consensus is ABSOLUTELY buy a house now if you can afford one.
This week in an article from CNN Money:"Barclays Capital put out a report recently forecasting that home prices, which fell by more than a third after the housing bubble burst in 2007, could be back to peak levels as soon as 2015.
"In our view, the housing market had undergone a dramatic over-correction during the prior five years, resulting in pent-up demand for housing purchases that would spark a rapid rise in housing starts," said Stephen Kim, an analyst with Barclays, in a note to clients.
In addition to what Kim sees as a big rebound in building, he's bullish on home prices, expecting rises of 5% to 7.5% a year."
Now, 7.5% for 3 years won't get the market value all the way back up to what we paid for our house in 2005 by the year 2015 but it would be close.
So if you are a first time home buyer, grab onto to a record low interest rate and rush to your favorite agent!
If you need to sell your house to buy another one and you would like to wait for a bit of recovery, just remember, it won't just be your house increasing. You can afford much more house now than you will be able to in 3 years and these interest rates can't last forever!
Sarah Marrinan
Realtor®
The Goerss Home Team - Keller Williams Premier Realty
www.CallSarahFirst.com
Direct: 651-964-0289
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