When Will Home Prices Go Up?

When will home prices go up?

This is the main question asked by homeowners who purchased their home several years ago and have sadly watched their equity reduce, or even worse, completely disappear.  Others are now in a negative equity position, owing more than their home is worth.

Most of us are aware by now that interest rates are historically low, swarming buyers  are buying again, and most recently, there is a shortage of homes for sale. The main reason for the shortage is that  homeowners who don't have to sell, are sitting on the sidelines waiting for prices to go up. In addition, banks have dramatically slowed down their foreclosure process due to the robo-signing scandal.

So it seems that with the low rates, shortage of homes and "willing and able" buyers, that prices would begin to rise.  I believe that they will but probably not within the time frame that some homeowners would like

For the next year, we will continue to see foreclosures come on the market as they are gradually released by the banks.  There will not  be a  huge release of foreclosures called "shadow inventory" . That is a term used to frighten people and is simply unfounded.

Some pockets of the market are already beginning to see a slight rise in prices, but it will be a year or so before it will be enough to get excited about.

Remember, if you sell low now and are planning to purchase another home anyway, you get to buy your new home at a bargain price too!  Watch for future articles on how you can actually improve your equity position immediately ifyou are purchasing a higher value home.  If you can't wait, call me to discuss your personal situation.  I always enjoy hearing from you!

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415