Is Now the Time to Buy or Sell My House? Real Estate Outlook for 2010
According to Realty Times home prices and interest rates will continue to rise through this year due to "reports of fewer layoffs plus significant new gains in manufacturing output and retail sales". They also state the economy is climbing slowly out of recession, and the Federal Reserve is expected to throttle back on its mortgage securities purchases which is why interest rates are now trending upwards.
This may be true for the Feds, however I do not see such a fast recovery from the recession. Each week new reports are released showing the huge amount of job losses and unemployment remains at 10%. Construction lost 53,000 jobs last month and manufacturing lost 27,000 according to Department of Labor. There were, however, 47,000 more temp jobs. Those unemployed for more than 27 weeks increased again, though the numbers declined for the prior two time periods. The number of discouraged workers is also worsening. There were 929,000 reported in December which is the highest seen during the recession.
But according to the Mortgage Bankers Association, thirty year average fixed rate for new mortgages is 5.2 percent and that's still very low by historical standards. Home prices are beginning to rise in some areas according to the latest Case-Shiller home price index. In San Francisco and Minneapolis, the index is up by about 15 percent since the low point earlier in 2009. Another interesting fact is that November 2009 pending sales was a solid 16 percent increase above November 2008.
If this information tells us anything, it is that the market is dynamic so buyers and sellers need to stay informed. And as I stated in my last post, most people buy and sell their home because of the time of their lives, not because of the timing of the market. You know why you need to move; I just want to help you get there faster.
If you need help making the decision on if you should buy or sell your home in Mankato, call me so we can sit down together and discuss your personal situation and your options. Visit BuyMankatoHomes.com if you would like a free home evaluation or to learn more about the Mankato area.