The housing market has seen its ups and downs throughout the year and many feel that potential recovery may come in 2011, while others believe it could take longer for homeowners to see equity return in their home as some property values have a long way to go before achieving their old worth. There are reports which show housing prices are down for October, which have many on a pessimistic side of the housing recovery which is hoped to begin in 2011.
Obviously, homes that are simply sitting empty as a result of foreclosure have been a drain on the housing market overall, but unemployment still remains a major driving force behind trouble in the housing market. However, low home prices and interest rates on home loans have been seen throughout 2010 and there are some who feel that the present time would be ideal for potential homebuyers.
Yet, there are questions as to whether now is the time to buy a home since there are still fears that home prices could drop further, but there have been increases in mortgage interest rates recently. Some feel that these small increases in mortgage rates could be hurtful to the housing market, but others believe that with low home prices currently available and the potential rise in interest rates on mortgages, some homebuyers may enter the housing market in the coming months in order to take advantage of these opportunities.
Understandably, many homebuyers have been hesitant to purchase a home due to either uncertainty in their personal financial life concerning their job, fear that home prices will drop further, or some homeowners were simply unable to purchase a home due to foreclosure moratoriums which were recently a problem.
While some argue that buying a home at the present time would be a poorer decision, if a homebuyer looks at home as an investment, since, again, prices may dip lower in the coming months, and these individuals feel that potential homebuyers may do well to wait and simply use their money for other investment opportunities. Yet, individuals who simply want an affordable home may have that option at the present time and there are arguments which state that homebuyers who purchase a low-cost home and plan to live there for a reasonable amount of time could see an increase in their property value in the coming years.
Yet, no matter what side of the argument one falls on, potential homebuyers are still advised to be cautious when seeking an opportunity to purchase a new home as there are affordable prices in the market and low interest rates to be had, but worry over economic and employment stability are still is a factor for many and may prevent more homes from being purchased at least until the horizon looks more promising.