Have we hit the bottom for the Housing Market and What can we expect?

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Have we hit the bottom for the Housing Market and What can we expect?

According to the National Association of Realtors and USA Today, many analysts are saying we have finally hit the bottom for home prices. Per the latest forecast by Fiserv, “the market watcher sees a big boost to home prices on the horizon, projecting that home prices will rise nearly 4 percent per year for the next five years.”

The markets expected to see the biggest increases will likely be the hardest hit, such as Las Vegas and Phoenix. These are also the areas that have fallen the most, according to Fiserv’s forecast. It is expected that prices will stabilize by summer’s end and then start climbing and in some areas quickly. Investors will more than likely drive much of the momentum, followed by first-time buyers and trade-up buyers.

What are the key factors to this turn? Good affordability and declining inventories. According to Fiserv economist David Stiff, conventional mortgage payments account for 12% of median family incomes vs. the historical norm of 20%. With interest rates under 4% and rental rates on the rise, in many cases a family can own a home less expensively than renting.

Our Charlotte market is also improving. In April, according to the Charlotte Multiple Listing Service, there were 2,319 sales in 2012 and 1,985 sales in 2011. Listings are also up. As of May 11, 2012, there are 25,842 listings and last year there were 23,479 listings.

So is it time to buy? Absolutely! Interest rates are still historically low and all indications are that home prices are on the rise. Whether you are an investor, first-time homebuyer, or move-up/down buyer Henderson Properties is here for you. Please email us at lind.goodman@hendersonproperties.com or call 704-544-0253.