Every day I continue to read and hear articles predicting how the market will perform 2011. As in the earlier posts, most are still very optimistic although cautiously so.
For me, I am finding that people in our community are much more optimistic about the coming year and the possibilities. They are feeling better about the economy and beginning to consider major purchased.
By some predictions and indicators, they are right. Orders for durable goods such as cars and furnishings are up, suggesting a consumer willingness to spend money on big ticket items.
Freddie Mac economist, Frank Nothaft says although home-price patterns in 2011 will vary widely by region and neighborhood bottoming out nationally in 2011. He doesn’t expect an increase in pricing until 2012.
Statistics show that there has been some stabilization in price in the last months and interest rates are predicted to go up. For those who have been waiting for the bottom, now may be the time to buy! It is for sure that there is no “ringing of a bell” when we hit bottom. You only know once the market begins to shift up.
Lawrence Yun, NAR economist has a bright view of 2011 because of recent numbers. According to NAR figures, existing home sales got back on an upward path in November resuming a growth pattern trend since bottoming out in July.
He also states that the relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970. Therefore per Lawrence Yun the market is recovering and we should trend up to a healthy, sustainable level in 2011.