Sunday, January 16, 2011

Understanding the Housing Price Forecast for 2011

The big statistic that most people want to know: might my home go up or down in value during 2011? Altos Research does not paint a rosy picture for the beginning of 2011.

This firm expects home prices to slide during the latter part of 2010 and into 2011 for a low that will compare to the bottom of 2009. From here, prices are expected to rise back up to 2010 levels.

While Standard and Poor’s forecast is more vague, it suggests that the weakness in the housing market over the summer of 2010 could lead to lower home prices if the trend continues.

Focusing on the good, the housing starts are expected to rapidly increase in 2011. This is a positive leading indicator for home owners and the real estate market in general. However, the short-term picture is a little bleaker. If you can afford to hold off on selling your home for another year or two, you might earn a few extra dollars profit.

The great news is that if you are interested in buying a home in 2011, you just might enter the market at a perfect time where house prices are low as well as interest rates.

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