Archive for February 28th, 2011

Could 2011 End the Down Housing Market?

According to a Wall Street Journal article today, 2011 could well be the end of the housing crash. They cite several reasons but one in particular that is in contrast to the housing bubble is that there is an increase in cash buyers and deals. During the height of the housing bubble most deals were done through loans.  

That is good news for the future because if the prices go back up a bit and then dip back down, many of the homeowners have full equity in their property. This could help avoid another disastrous housing crisis.

Another important issue discussed was that on the national level the cost of a home is estimated to be around 19 months of pay. This is the lowest it has been in 35 years! Prices normally cost about 2 years in pay. Couple that with the relatively low-interest rates and you have a great buying opportunity.

The article does go on to caution that buyers that are in the market right now should plan on buying and holding onto the property for 10 years. They use this caution because there is still the potential for housing prices to dip another 5 to 10%. But since there is not guarantee how prices will go in the next few months, waiting to find out could cost the buyer a great deal.

I will be posting the local numbers for February for Boise, Meridian, and Eagle, Idaho by weeks end. It should be interesting to say the least, with good and bad news mixing it up as usual!

If you would like to see information regarding the current real estate market in the Boise area please go to my website (no sign up required): http://www.BoiseRealEstateChick.com

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