Housing Market Forecast Projection 2011

Where is the housing market headed in 2011?

That's the question that every wants to know the answer to. If you turn on the TV or read the newspapers you will likely see stories about the slow market, high unemployment, low consumer confidence and lack in demand for housing. The question is: What factors will affect you? And what should you pay attention to?

So the projection for 2011 is for foreclosures to increase and possibly peak which will likely result in housing values dropping another 7-10% before the end of the year. But we have record low interest rates this has been driven by the federal reserve and will likely continue until the job market improves.

Affordability is becoming very good and in some places it's less expensive to own than to rent. The market may bottom out in 2011 although values will likely stay down for the next 3-5 years before we start to see appreciation. It's going to be a slow process.

So what as home owners should you do? You have 2 options: stay or sell. If you do decide to stay in your house it would make sense to look at refinancing as interest rates are very low. If you are going to sell it would be better sell sooner rather than later as values are likely not to increase for the next 5 years.

Now for buyers, this is an excellent opportunity. You can purchase a property below market and get a low interest rate. Be sure to keep your mortgage affordable.

Need assistance selling in Portland, Oregon?
www.byownerpdx.com

Refinancing in Oregon?
Contact: Chelsea @ Alpine Mortgage - 503.496.4936

Category:

People & Blogs

Tags:

• foreclosure
• short sale
• market
• 2011
• projection
• forecast
• housing
• interest rates
• refinance
• low interest
• rates
• appreciation

[livezesty]

Every market is somewhat different. Here in Portland, Oregon the values are still dropping and will continue to for at least another year. Should you buy? As an investor in Portland probably not. As a owner occupant possibly. Here's the deal... Interest rates are hovering around 4.75%. Take a look at an amortization table and compare the amount of interest you will pay at 4.75% vs 5.75%. You'll find that it's a better investment (long term) to get the lower rate vs cheaper house.

[oracleturts]

"pick up a home below market?" This is the market and it is still declining.

[oracleturts]

Yes it may be cheaper to have a monthly payment that is cheaper than renting if one purchases a foreclosure. However, until the market is on an upward trend buyers will be stuck in their purchase and will need substantial capital in order to secure a good rate. I personally think the scaring done by the crash will affect the market for 7-10 more years

[olhatube]

Livezesty, I like your video Could you please provide the reference of your findings, the information sounds fair and somewhat accurate. I

I currently do home designs and more info can always help.

Take care