Despite the gloomy national economic outlook, the best buyers' real estate market in at least four years will develop by late summer in most housing markets, according to a new Housing Predictor forecast. Lower interest rates will draw buyers to make purchases of homes more than in years. Increased buyer activity in housing and more home sales will demonstrate the first signs of a recovery.
How long will it take before we get out of this mess? Conditions are moving in the right direction for a correction in housing markets to develop, but the unprecedented level of foreclosures will hamper the recovery for sometime. Economists just aren't sure how long that will take.
Housing prices are not yet forecast to appreciate as a result of the Fed's actions, but are efforts to stabilize markets, according to real estate analysts. As a result of the Fed's actions mortgage rates dropped the day following the Fed's move and are likely to drop further as mortgage companies react in coming weeks.
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