Adapted from Paul R. La Monica's article in CNN Money The Buzz.
The government will release new-home sales figures for the month of January on Wednesday and Economists are expecting a 4% increase for the month bringing the level to 355,000 new sales. And that 4% increase is rebounding from an 8% drop from last December, which could be attributed to several reasons, nevertheless we are seeing signs of improvement.
Some predict increases in new home sales all the way up until April due to the tax credit, but once it expires and the Fed starts to unwind its portfolio of Mortgage Backed Securities and with the proposed increase in interest rates this year, some predict a slower home sale period after April.
Often times the strongest indicator of a recovery in the housing market is the level of home prices and as the supply is depleted due to the increased strength in home sales, the prices will start to creep back up and estimates predict a 1.6% increase in housing prices this year. Couple that with the almost certain increase in interest rates and you can see why now is the time to buy real estate! No one wants to buy a more expensive house at a higher rate, which is exactly what you'll be doing if you wait until the end of this year.
As always if you are considering relocating or retiring to somewhere warmer, with low property tax rates, plenty of warm family friendly beaches, and great places to eat or play a round of golf, do not hesitate to take a look at Brunswick County, NC or give our office a call at (910) 575-0075!