Are we on the rise?

Let's face it no one can predict the future so take everything you hear and try and make your own educated decision. After reading several articles from national and local publications and my own experience in the everyday grind as an agent this is what I see.

Home prices should be about the same next year as they are today, some neighborhoods are still going to drop, but overall we have hit bottom. Very few if any will see any sort of rise in prices and the rise will be very small. There are some economists that do say that prices will increase 3/4% in 2011 and 2.5% in 2012. I think that prices are going to remain low for the next 3 to 4 years. What will not stay the same is interest rates.

Interest rates will likely rise. Several economists believe that rates will rise near 1% per year for the next two years. If the US budget deficit gets any worse inflation will rise which will push up interest rates much faster.

Good deals sell fast and are only going to sell faster. Are population is still growing, several buyers have been waiting to buy, and investors are more aggressive than ever. Utah's economy is at the forefront of the nation. Our home sales have taken a hit due to the expiration of home buyer tax breaks, but should come back strong this spring, car sales in the state are up 18%, International Exports are up 45% which puts us at #1 in the nation, we are adding jobs now vs losing. Together with a handful of states, Utah will lead us out of this recession.

Bottom line to the whole debate, if you can afford to get into the home you plan on raising your family, now is the time. In a couple of years after prices have risen slightly and interest rates are no longer at record lows, that home could be out of reach. 

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Are we on the rise?

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