There is no doubt, the current economy and housing market are struggling. The good news is that reports coming out of the National Association of Estate Agents show home buying and selling is improving primarily from improved interest rates, although only slightly. However, seeing an increase in people looking to buy, as well as new homes on the market, is a good news.
Unfortunately, first-time buyers have had a difficult time buying homes in recent years because of high price. In fact, studies show that this group accounts for only 10.8% of homes sold. Then, while movement in the real estate market was quiet back in December of 2008, somehow agents were able to maintain a steady pace with an average of six sales.
Inspite of the encouraging numbers, a lot of people are still asking whether 2009 is the right year to buy a home. To be able to determine the answer, the Financial Times conducted a study consisting of 50 economists. Of these professionals, 60% stated that 2009 was not the right time to buy but the remaining 40% disagreed but only if property was purchased during the fourth quarter.
2009 was a safe year to buy a home according to 40% of the economists, the main reason that supported their decision was that getting people to buy real estate would help protect and even boost a declining financial market. Mortgage lenders agree that interest rates look optimistic for the whole year and some believe that at the end of 2009, more credit will become available for buyers, especially with the aid of the government.
To sum it all, people are not making rash decisions. With high unemployment numbers, it is thought that demand for real estate will continue to be low. Of course, some people that choose to buy a new home, which comes with many benefits. Even though buyers exist, most have lost faith in the concept of real estate being a sound financial investment, a great way to build equity and get a return on investment.
Keep in mind, once the recessions has ended and within a few years, it is possible that the housing market will boost, thus making a full recovery. With this, the country could once again face a low supply of property, as well as low prices and better options for lending.