Wednesday, December 1, 2010
Is the Housing Market Better?
No, well yes, okay maybe. It depends are you a buyer or a seller. Housing prices declined by 2% during the third quarter, but for most of 2009 and 2010 have remained stable. I expect this is be part of the new normal. Housing prices should increase at the same rate as inflation (1-2% annually). A lot of the price changes will have to do with the interest rates. With low interest rates, I'm surprised prices didn't increase a little, but with a fixed population there is no reason to expect housing prices will increase at a faster rate, unless we end up in another housing bubble.