After a downturn in the 2005 real estate market, experts claimed that the bubble had burst. As it continued to decline in 2006, many sellers were feeling the pinch. By mid-2007, however, buyers were riding the fence trying to naively predict what was to come.
Where are we headed in 2008? According to the National Association of Realtors, the Feds Stimulus Package and other economic factors are said to jump start the economy in the second half of the year, prompting more buyers to dip their toes in the pool.
Rising sales will, thus, bring down inventory and help strengthen home prices. The prediction is that the national median price of an existing home (not new construction) will increase in the second half of the year, leading to a stabilized housing market.
Where does that leave you?
As a buyer, it's time to get moving. Trying to time the market may not pay off in the long run, as finance costs will rise in conjunction with a recovering economy. A plan to wait until housing prices fall even further could be a recipe for disaster. Your potential savings could be countered by higher mortgage rates. Dan Kaldec Chief economist at mortgage firm Lending Tree explains more in Ignore the Headlines.
