Why to buy house right now!
In the article pulished in te website of CNN Money 3rd of May, the housing experts predict that this year is the last chance to benefit from the low house prises and low mortgage rates since in next year the prises are likely to raise.
The full article you can read from: http://money.cnn.com/2012/05/03/real_estate/home-buying/?source=linkedin
But under you can find a short summary of the artikle.
Several housin experts are predicting that the property prises will increace in 2013. They say that now is the last change to benefit from the weak housing markets. They aslo guess that it si highly likely that buying a house will never be as cheap nor cheaper than right now. Stuart Hoffman, chief economist for PNC Financial Services predcts that prises will stop falling by the third quartal and tart rising by next year. He says that many thing will help the situation to reinforse e.g. decline in the number of foreclosures and the job growth. Also byers will increase their possibility to get mortgages when their finance situation gets better and their credit scores improve.
In other hand econimist Trulia’s Jed Kolko expects prices to increase more rapidly. Based on his data national average for asking prices already increased 1.4% in the first quarter of 2012, compared to the last quarter of 2011. But the situation will most propably change in slow motion so the house buyers who are not quite ready to make their desisions are not in the horry. One speculation is that the prices will increase only 2% and another one says that they will increase 4.2% throught the year 2013.
Alex Villacorte, the director of analytics for Clear Capital, says that the price of the properties that the bank has foreclosured is quite high due to the fact that these properties are bought by investors who are fixing them and renting them out, often to the people who have lost their houses during the financial crisis. “That could have a significant impact on the market overall in terms of providing a rising floor to home values,” he said.
“Mortgage rates have been at or near historic lows for much of the past six months. The average interest rate for a 30-year, fixed-rate mortgage has not topped 4.5% since July 2011 and this week, it hit 3.84%, a new low.”
Doug Lebda, CEO of LendingTree, the online lending site, thinks that rates aren’t remaining at these record-low levels much longer. As the economy continues to recover, rates will move higher. Although, he said, they will “stay very reasonable.”
Stan Humphries, chief economist for Zillow, thinks that when the prices stop declining and the markets stabilize the buyers will feel more comfortable about buying. “People can now see the light at the end of the tunnel,” he said. “And that can be enough to get them off the fence.”