Home prices and the economy as a whole continues to get worse, but the National Association of Estate Agents (NAEA) has pointed out that in recent months there has been a tiny increase in activity with potential buyers and sellers in the market, which may differ from the rates. Has there been an increase of those who try to buy a home and the number of new properties on the market?
There are some very interesting numbers I want to share with you before I give you my answer on the question is 2009 the time to buy a house. First time home buyers were responsible for 11% of all home sales for the first half of 2009. The selling price of homes in certain areas rose last month. Real estate agents report that the number of people looking for a home to buy rose from 170 to 203. The number of sales per agent also rose from 8 to 9.
Everyone is now wondering if 2009 is the year to buy a house. In a recent survey of more than 55 real estate analysts, 60% believe that 2009 is the year to buy a house. Probably the single most important factor to look at when speaking about home sales is interest rates. The 60% of analysts who believe now is a good time to buy a house also believe that interest rates will not be raised until sometime in 2010. It is both low prices and low interest rates (borrowing rates) that will pull more buyers into the housing market.
40% of industry analysts surveyed feel that it is too early to buy a house. They believe that the price of houses will continue to drop. The reason they give is that unemployment will continue to remain high. Even more workers will worry about job security. The banks will continue to reduce credit lines and make fewer home loans. Capital Economics forecasts home prices to fall another 20% before a bottom is reached in late 2009 and early 2010. A small amount of extreme analysts expect home prices to fall all of 2009, 2010, 2011, 2012, 2013 and finally bottom in 2014.
Overall, the consensus is that you should not feel rushed to purchase a house. The country continues to be in a recession and unemployment is continuing to rise. With the banks continuing to make fewer and fewer home loans as they tighten credit, the demand for houses will remain low.
Another negative factor on the price of homes is perceived risk by market participants. Buying a house has always been a good investment until 2006. Now everything has changed. Houses are seen as more of a risky investment now. Even banks view homes in this way which is why they are giving out fewer and fewer loans. With this negative perception in the housing market, I believe that home prices will continue their downward trend for the rest of this year and that 2010 will reveal even better bargains than in 2009.
I hope you find this article helpful. If you own property in Fresno California and are in need of a property management company visit Fresno property management. If you are a tenant looking for the lowest rent on apartments for rent in Fresno, visit apartments for rent in Fresno CA