More and more experts are indicating they expect a positive turn in real estate in 2011. Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time, offers the following reasons why she believes real estate is likely to improve in 2011.
1. Mortgage rates will stay low.
Even with rates climbing they are still well below where they have been historically.
2. Tax cuts could help.
Extending the tax cuts could encourage a more rapid recovery for the economy.
3. Americans want to be home owners.
A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.
4. Builders are about to begin building.
Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.
5, Homes are shrinking.
Homes are getting smaller, which has made them more affordable.
Source: Daily Real Estate News – December 27, 2010