2009 House Market Prediction
Those that are interested in buying or selling their homes have been watching various sites with great interest to see what their 2009 house market prediction will be. So far, many people are refusing to make any sort of prediction, but those that have are saying that the price on homes will continue to decrease as the year goes on. This is a bleak outcome for those looking to sell, but may be exciting news for those that are wishing to buy at some point during the year. If you’re one of those people, don’t wait too terribly long before beginning your hunt for a new home.
Many are saying that that the price of houses will continue to decrease in their 2009 house market prediction, but some are also saying that, at the end of the year, the price of houses will begin to rise again. They believe that once the prices bottom out, this will create the perfect condition for bargain buying, which will initiate a new cycle of optimism and get customers to start spending on homes again. Some areas will see this change start to take hold at the end of the year, while others will see it in the beginning to middle of next year.
Those that refuse to make their 2009 house market prediction state that there simply wasn’t enough accurate data to go on yet. They argued that the level of inflation, unemployment, and the general health of the economy were absolutely necessary in order to determine what state the housing market would be in throughout the beginning, middle, and end of 2009. Without those numbers, it was impossible to make a sounds prediction and so they refused to make any prediction at all. To do so could potentially give consumers false hope and reassurance, and they didn’t want to take that step.
Statistics show that the price of homes has dropped approximately 25% since 2007. According to some reports, this puts the average price of homes back to being as affordable as they were during the best times in the 1990’s. Several market experts are stating in their 2009 house market prediction that they expect the price of houses to fall an additional 10% before the housing market begins to recover. If you’re not interested in buying but rather in selling, you may see things begin to pick up early next year.
For those that find the 2009 house market prediction made by various experts to be depressing, here’s a new way to look at it. One of the reasons that we’re facing the current decline in price is because of a rise in the amount of income that was eaten up by mortgage payments on an average home. During the nineties and early 2000s, it took approximately 19% of monthly income in order to service a mortgage. For first time buyers in 2005 and 2006, it went from 29% to a staggering 37%. Eventually, it was too much for people to be able to afford, and so they stopped buying.
The 2009 house market prediction made by most experts is basically putting the overall cost back to where it used to be where most people could more comfortably afford the mortgage. Once they can afford the mortgage, people will begin buying again, and thus the housing market will begin to see a slow turn around in the current trend.
Keep in mind that when experts give their 2009 house market prediction, they’re making a very general prediction. They normally do not break it down by the type of house, the overall price range, or the area that the house is located in. It does, however, give you an idea of what to expect. It also lets gives you an idea of how to plan for the future. For example, if you’re interested in selling your home, you still may not find an opportune time for another year or so. If you’re interested in purchasing a home of your own, then doing so at some point his year could be the perfect time. For those that are looking to purchase, now would be a good time to begin setting aside for a down payment if you haven’t been already.
Even though the 2009 house market predictions given by market experts aren’t perfectly accurate, they do give you a good idea of what to expect. Many sources concur on one very important point -the worst is now behind us. While they may not be able to agree on exactly when things will begin to turn around, most do agree that things will begin turning around, whether at the end of this year or the beginning of the next.
This entry was posted on Thursday, August 27th, 2009 at 12:49 pm and is filed under Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
