This isn’t great news but every little bit helps. Analysts who monitor real estate data are saying that home values should stop dropping late next year.
Here’s a quote from the USA Today article:
U.S. homeowners lost $681 billion this year, according to a study by real estate website operator Zillow set for release today. That’s less than the $1.1 trillion drop in value in 2010, let alone the $2.7 trillion in losses in 2008, Zillow said. And a Zillow survey of 109 economists says U.S. home prices will stop falling late next year or early 2013, with the most optimistic quarter of economists predicting an 18% rebound by 2016.
What does that mean for your situation? If you are currently renting, make sure to add, “Buy a new home in 2012” to your To-Do List.
For those with a house in Louisville to sell before you can move to a new home, it’s a bit trickier. If you’re planning on moving up, you should also make the move before prices rebound and interest rates are still low.
A lateral move is a toss-up. Speak with your real estate expert.
If you are downsizing, then I recommend waiting until home prices have returned to 2008 levels.
