Why 2009 might just be a better year for those who seize the opportunity!
2008 was a frightening year for a lot of people. Money was lost in the stock market, home owners had trouble selling, and those who did got less then they had hoped for. Home buyers struggled to get financing, and we saw some of the biggest economic declines in years. Feeling depressed? There’s good new news; many analysts see a brighter future for 2009, especially for those who aren’t afraid to jump in.
Housing:
Home prices have fallen by about 12 percent since 2006 making the national median home price around $198,000. Analysts predict that this increased affordability will lead to an increase in home sales for 2009. Increased sales may also trigger an end to falling home values. If you’ve been waiting for the bottom, we may just be very close.
Mortgage Rates
Mortgage rates are predicted to remain low throughout 2009 which is great news for homebuyers. The government may also pass several initiatives to help banks lend more money. For those who have less then stellar credit, government backed loans are still a great option.
Perspective:
Even though predictions for 2009 look better, you may still be feeling uneasy about it all. Here’s a little perspective on housing & the economy.
Housing: The median home price in 1990 was $80,000. That means that prices are up 125% over the past 20 years. Housing will always have its ups and downs, but over time, values always increase.
The Dow: The Dow may have fallen 40% this year, but at the end of 1990 it hovered around 3,000 as apposed to 8,500 during the final month of this year. A nearly 100% increase.
Good Investments:
There is no doubt that investing in a home in 2009 will be a good move. Prices will be low along with interest rates. However, another interesting investment opportunity lies in multi-families. The outlook for the apartment rental market remains positive as many potential first time home buyers remain at the sidelines. In addition, rents are forecasted to grow by 4% in the coming year.
It’s almost impossible to predict when we will have reached the bottom of the downturn, but there are a lot of signs indicating that we are very close, making this a great opportunity to jump in. All too often, potential buyers miss out on the best deals by waiting for market data to reflect significant improvement. By the time market data shows shows an increase in sales and home values, the bottom will have already passed. 2008 might have been a scary year, but don’t let that keep you from making a move in 2009. Opportunities abound, 2009 might just be a very good year!
