Will Home Values Rise This Year?

Noooooooooooooooooo!!! Home sales based on median price will show a decline in 2012. This will be the national trend, there will be a location here and there that will see upside off their lows.

ALL MARKETS HAVE THE OPPORTUNITY TO COME OFF THEIR LOWS.

My crystal ball tells me their are to many headwinds in the countries macroeconomics to boost prices. Their are to many distressed properties on the market that nobody wants. When they are bought they will bring down comparable's with them.  The looming shadow inventory will have to be released at some point. Absorption of the units will take time.

Without the help of  government intervention, and the private sector having little incentive to get involved, at best we will see housing numbers remain the same this year. Still a good time to buy.

Will your home gain value over the next 12 months? Nobody can know for sure, but should recent housing trends continue undulating along the bottom, prices will be flat.

The housing economy has suffered since 2007, knocking home values down nearly 20% nationwide. And while some areas have fared better as compared to others but, in general, home values are down.

Mortgage rates are down, too, and that's good news for buyers in New York. The combination of low rates and low prices has led home affordability to an all-time high. As you'll hear in this 4-minute interview with NBC's The Today Show, carrying a mortgage costs 25% less per month as compared to just 3 years ago.

Some other notes from the interview include :

• There are more buyers out looking for homes today, which leads to more sales
• The housing market is expected to get gradually better, month-by-month, in 2012
• Foreclosures will continue to be a big part of the housing market

With housing supplies shrinking, buyers throughout New York may find their best "deals" today -- before the Spring Buying Season begins in February.

However, we can't forget that housing markets are local -- not national. Each town and neighborhood has its own market drivers and prices where you live may have already started to climb.

For accurate, up-to-date data on the housing market, talk with a local real estate agent.

My phone is ringing of the hook. Anybody remember those old phones?

Till next time

The New York Real Estate Nurse