Beacon Economics analyzed home affordability and came away feeling optimistic.
Beacon Economics founding principal Christopher Thornberg, whose firm advises a variety of business clients, says the high level of affordability is likely to drive demand and reduce the stock of excess inventory, ultimately resulting in the need for new housing, a rise in prices, and a pickup in new construction.
“While prices may fluctuate modestly over the next several months, we believe the worst of the housing crisis is behind us,” says Beacon Economics Research Manager Jordan G. Levine. “We expect prices to stabilize around current levels and likely be higher in the next 12 months.”
Have a wonderful week!
Mahalo Nui Loa,
The Smith Team
P.S. Interest rates still at record low levels. Conforming loans are still in the low 4′s with no points. Let us know if you’d like to be pre-approved for a loan, so you can be ready to jump when the right property comes along. Sometimes, it is all about timing…especially with REO listings.