3. Prices are Trending Back Up
Major price indexes have been showing signs of price increases throughout the country including Middle Tennessee. Reports show prices have hit a bottom and are trending in a positive direction. While there are micro fluctuations in the market, macro changes exhibit the activity. It's been nearly 30 months of declining values, in nearly every U.S. market home prices appear to be stable or appreciating.In August of 2010 the National median home price was at $182,600. This amounted to an 11% increase of reports from February of 2010 showing the median price of $164,000.
During the first week of September home prices were up in 15 of the top metropolitan areas, as indexed by Standard & Poor's Case-Shiller. This amounts to nationwide gain of 4.2 percent over this same time last year.
In other words, staying on the fence and waiting for prices to drop is OVER!
It's Micro vs. Macro thinking. While there are some watching Micro changes in the market, waiting to purchase will most likely put you in a Macro (or large) loss category. What I mean is this, waiting for small changes in the market will probably put you in a category to lose bigger by waiting for prices to drop in light of interest rates on the rise as well.
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Or as William Wheaton puts it,
“The market is probably going to zig and zag a little for the next six months, but it’s not going to drop any further.” |
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