If you thought that there would ever be crystal clear predictions for the housing market, those days are long gone. But, what we can say is that there are several predictions that experts are holding fast to. If you are planning on moving soon, you might want to pay attention.
1 – Prices and Mortgage Rates Will Stay Low in Most Areas
This prediction is a kicker, because it is two-fold. While the prices and rates will likely stay on the low end for most areas, they will begin to rise in more affluent regions and markets. This growth will come alongside increases in population and jobs. So, the more people moving into an area because of jobs means that the house prices will likely go up.
2 – Guidelines for Loans Will Tighten Up
As people consider relocation during this “buyer’s market” we may start to see the guidelines for lending tightening up. When that happens, we can also expect to see the dollar amount of down payments and loan costs increase. So, expect to see some tweaking in the FHA lending guidelines in 2011 and watch for more requirements for prospective buyers.
3 – Condos Will Be Harder to Buy
While this may seem like a surprise to some of you, it may actually get harder to buy a condo. Why? As the value of condos fall, more will become behind on their homeowners dues, walk away from their mortgage, or even rent them out instead. So moving into a condo you want to own may become quite a challenge.