Home Prices Leveling Out
Home prices are stabilizing, according to CNN Money. In fact, many economists believe values nationwide will hit bottom in the second half of the year–but not before falling another five to 10 percent first.
Experts are advising buyers to make their move now though, before interest rates rise. According to CNN Money, “If the Fed stops buying mortgage securities in March as planned and private investors don’t step up, rates could spike to 6% or higher sooner and faster than expected, slowing demand and pushing prices down.”
Some also caution homeowners from selling their existing homes now
so that they’re not competing with foreclosures and short sales. However, this argument doesn’t quite hold in some more affluent communities where there are fewer foreclosures. For example, there are only a handful of foreclosed properties for sale in Wellesley out of the 120+ homes currently for sale in Wellesley.
Moreover, those with homes priced under $800K may do well selling now while existing and new home buyers can still take advantage of
generous federal tax credits.
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