Buyers Want a Bargain? Here’s Their Chance!
“Home prices have probably bottomed in most markets,” David Crowe, chief economist at the National Association of Home Builders, said in an NBC News-hosted Web chat with online visitors last week. “Mortgage rates are not likely to go down much further and will eventually rise as the economy recovers. Home builders are hungry and while you will still have to pay a fair price, you may not get a better bargain than now before all the rest of the demand comes back.”
However, the best bargains will largely depend on where you’re at, Crowe says.
“House prices are rising in some markets, notably Texas … In a few markets that were severely damaged by the recent Great Recession, prices may continue downward for another six to ten months,” Crowe says.
Crowe says one hurdle that may slow the recovery is the inability for some home buyers to still not be able to qualify for financing due to banks’ tightened underwriting conditions in the last few years.
But in places where the inventory of distressed homes is decreasing and demand is growing because of an improving employment picture, “housing is beginning to see some recovery, prices are picking up, and more building is occurring,” Crowe says.