Has the Market Bottomed Out?
After years of dropping real estate prices, it looks like things are finally starting to get better. Prices are increasing on a national level and the first time home buyer tax credit is keeping things moving for the winter.
I read an article in which James Wood, who is the main housing economist for Univeristy of Utah said that he believes homes in the Salt Lake area reached their low point in the first quarter of 2009. Other national economists agree with this as far as a national bottom as well.
So what does this mean for real estate in 2010? I will tell you what some forcasts are…
1. Sales will improve over the next 2 years but not reach normal trend levels until 2012
2. US home sales will be 15% higher in 2010
3. The US bottom for home prices may not hit until mid 2010 due to Obama’s loan modification plan. This plan delayed many foreclosures that will now come onto the market next spring causing prices to drop again.
4. US home prices could increase 3 to 5 percent next year once the distressed homes sales begin to decline.
5. Utah home prices will bottom by spring or summer 2010.
So, we are on the mend. Now is a great time to buy and the outlook is getting better for sellers. In todays market the most important factor for sellers is to price their home right. For ideas on this please visit my sellers section or give me a call!
Merry Christmas and Happy Holidays!
