March 28 2010

Can Housing Prices Continue To Fall?

by racheal

The signs of real estate seem to show that the prices seem to have reached rock bottom. All though some experts feel that there is still room to fall when it comes to home prices, the majority of the homebuilding industry seems to feel that we have reached the bottom. While there is not going to be a sudden growth or increase in home prices there may be a slow and steady increase.

Once thing is for certain is that there is a buyer’s market out there. There is still positive attitude towards real estate among the public, which is when it comes to homebuyer. Investors are looking out for bargains and people are upbeat about the market.  With the Home Buyer Tax Credit available and low interest rates, a feel of urgency to purchase a new home is among the public.

Homes For Sale Prices Continue To Fall

The federal government has made know that they intend to keep the mortgage rates at this low level without increasing it for the next six months. Mortgage applications and refinances are up by almost 7% and have shown an upward trend.  However there is a see-saw happening in the mortgage industry and the trend is sure to take an upswing before it steadies at an affordable level.

While California has been used as the country’s general trend setter in the housing market, California’s mortgage scene has been on an upward drift. There has been a 4% increase in home rates which is promising to sellers and real estate developers. Even the number of homes for sale has gone down sufficiently. If this is any indication on our country’s real estate market, than we are on an upswing. However for the time being you must pay attention to your local market. For instance single family homes in Bakersfield, are at a standstill with in regard to prices. 

The US Government has decided to help medium and low income families buy a new home with certain attractive formats. Those who qualify can buy a foreclosed home that benefits both the buyer with a great price and the bank is able to get rid of unwanted property gains. While purchasing a foreclosed home has its hassles with a whole lot of paper work involved, as usual, and the local government bodies are bogged down with work from Washington. Nevertheless people are buying foreclosed homes and there seems to be a positive move in home purchases.

All though home prices are at a low, the present economic scenario has created uncertainties in the mind of the public. The community is hesitant to purchase real estate, and rightly so. With job uncertainties you are unable to take the trend of a local economy and assume the same of the entire country. One must realize that the real estate market conditions differ though the US and one must consider their local market to make smart new home purchase. 

 

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