It’s January: Time to pack up your tacky tinsel, finish off that peppermint fudge and set your sights on the year ahead. If one of your resolutions this year is to take steps towards owning a home, real estate experts have some good news for you.
A PERFECT PRICE STORM
Mortgage rates have greeted the New Year with an all-time low of 3.94% and low rates are expected to continue at least through the mid-year, according to Freddie Mac’s chief economist, Frank Nothaft. CNNMoney reports that median home prices are expected to fall another 3.6% by the end of June. It’s a perfect storm of low home prices and low mortgage rates.
National averages are all well and good, but what does this mean for your area? CNN Money’s home price tracker provides local forecasts. Simply select your city and state for a forecast through 2013.
HOUSING MARKET FORECAST
Trulia chief economist Jed Kolko also foresees a good year for home buyers. Here are just a few of his housing predictions for 2012:
- We should see a gradual economic recovery in the housing market this year. The key word is “gradual,” so you still have time to snag a deal.
- Delinquencies will go down, but foreclosures will go up. Fewer borrowers will fall behind on their payments, thanks to the strengthening economy and refinancing, but we’ll see a new wave of foreclosures that’s long overdue. So, consider taking a gander at some foreclosed homes.
- Rents will rise. With fewer people buying homes, the rental market is only going to get tighter, especially in New York, DC and San Francisco. This is great motivation to ditch the rental and buy a home.
Check out the rest of Kolko’s predictions here.
Are you looking to buy a new home this year? What’s holding you back?
