I have a friend who was referred to me by another friend. This new friend is relocating to Madison from a smaller town out of state. She is excited and anxious about the move. While she is starting a new chapter in her life, there are still many uncertainties.
As she familiarizes herself with the area, we have looked at several homes in several different Madison neighborhoods. A couple have been possibilities, others not so much. But we continue to look. A few weeks ago she asked me about the market in the future. If she purchases now, what will her resale value look like in a few years?
Hmmm. It's a good question. Of course, no one knows the answer, but indications are that housing prices will begin to climb. For a buyer, that means their value will increase, as well. Steve Harney, a national real estate expert expects the market to look completely different in a few months time. And in a few years, he expects home values to appreciate by nearly 10 percent.
Other national real estate experts are saying the same thing. A recent Wall Street Journal article stated that "With home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents the best low-risk buying opportunity out there today." (Market Watch, 1/2011). And in March, Barbara Corcoran, the national real estate expert who often appears on the Today Show, said "We have a regular real estate miracle happening. We not only have record low prices, but we also have cheap money."
For buyers, it's a great time to purchase a home. Interest rates remain low and there is inventory to choose from, which keeps home prices lower than 8 or 10 years ago. I believe it's a great time to purchase a home, but the decision lies with the individual, not with me.
For my referral friend, we continue to look. And when she finds the house in the neighborhood she wants and most importantly is comfortable with making a decision to purchase, we'll be ready.
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