Without doubt, the current economy and housing market are struggling. The good news is that reports coming out of the National Association of Estate Agents show home buying and selling is improving primarily from improved interest rates, although only slightly. However, seeing an increase in people looking to buy, as well as new homes on the market, this news is encouraging.
Unfortunately, first time buyers have had a difficult time buying homes in recent years because of price. In fact, studies indicate that this group accounts for only 10.8 of homes sold. Then, while movement in the real estate market was quiet back in December of 2008, somehow agents were able to maintain a steady pace with an average of six sales.
The National Association of Estate Agents also reports that the slight increase in home prices proves that the rate at which home prices had been decreasing was slowing but only for certain geographical areas and for specific housing types. Another report showed that the number of people looking to buy a home had increased from 186 to 200 and properties that agents had listed climbed from 87 to 100.
Even with encouraging numbers, many people are still asking if 2009 is the right year to buy a home. To determine the answer, the Financial Times conducted a study consisting of 50 economists. Of these professionals, 60 stated that 2009 was not the right time to buy but the remaining 40 disagreed but only if property was purchased during the fourth quarter.
Of the 40 of economists that felt buying a home in 2009 was safe, the primary reason that supported their decision was that getting people to buy real estate would help protect and even boost a declining financial market. Mortgage lenders agree that interest rates look optimistic for the entire year and some believe that at the end of 2009, more credit will become available for buyers, especially with the government’s aid.
Anticipation is that homebuyers will again take interest in the real estate market once the market has bottomed out. This increase in prospective buyers coupled with low interest rates and available mortgage loans, things look relatively good. Of course, the 60 of economists believe that real estate prices will still be too high during 2009 when looking at a buyer’s income and available credit.
You will also find economists that expect to see falling real estate prices throughout the remainder of 2009 and into 2010. In fact, several respected companies have put numbers to their forecasting. For instance, Capital Economics believes housing prices will go down an additional 20 , Insight is predicting 15 , and JP Morgan is going with 10 . While difficult to hear, these experts are expecting an end within a short amount of time. However, another company is not so optimistic, predicting that housing prices will not stop falling until the year 2014.
For these and other experts to make such predictions, numerous factors come into play such as rising unemployment, high debt to income ratio, restrictions on credit, slow economic growth, and others. With so many people living in fear of the current recession, most are sitting tight in their current job and not planning to buy property at this time.
Overall, people are not making rash decisions. With high unemployment numbers, it is thought that demand for real estate will continue to be low. Of course, some people that choose to purchase a new home, which comes with many benefits. Even though buyers exist, most have lost faith in the concept of real estate being a sound financial investment, a great way to build equity and get a return on investment.
Keep in mind, once the recessions has ended and within a few years, it is possible that the housing market will explode, making a full recovery. With this, the country could once again face a low supply of property, as well as low prices and better lending options. Right now, real estate that is going to auction or needing to be renovated is going to sell low, meaning these homes make a great deal for someone. Therefore, if you want to purchase real estate this year, put in a low bid and purchase property where you can stay for many years.
Author Resource:
Frank Hendrickson, Freelance Writer. We are committed to providing free helpful information about the real estate market. If your want to know more about the Uk quick house sale visit http://www.sellhousefast.co.uk/ .
Frank Hendrickson is a real estate investor based in Texas. He is a former estate agent and writes widely about issues related to real estate and finance. His current interests are focused on the UK quick house sale market and how it’s been affected by their property crash.
![[Valid RSS feed]](http://www.look4articles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
![[Valid RSS feed]](http://www.look4articles.com/images/rss.jpg "XML Feed For RSS")