WSJ: Murky Outlook?
Robert Shiller, of the Case Shiller Index is interviewed in this video by the WSJ. The outlook is not that great, but there is good news. First our area has not been affected as severely as other parts of the country. We see that the first quarter of 2010 and perhaps into the second quarter the activity will be stronger than 2009. The threat of rising interest rates should be of concern to sellers and buyers. So while the saying sounds overused, NOW is the time to sell for two main reasons. First as a seller you can take advantage of the opportunity while the homebuyer tax credit is still available. Buyers must be under contract by April 30, 2010. The second reason is that most economists believe that interest rates will have to rise in 2010. If rates go up from 5% to 6% this decreases the buyer’s top price by 10% if the buyer is payment sensitive—which almost all are today. If you would like more information about our local real estate economy or the value of your home feel free to call me.
Posted by:
Glenn Hanon
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