Home prices will stabilize in 2009 and then rise – or they won’t!

Recently the number of times people ask me what the housing market is going to do in 2009 has increased.  It seems that is the number one thing to ask when speaking with a Realtor these days.

It’s no secret that if more people get mortgages they can afford and purchase houses, it could be the beginning of the fix for all things economic.

It’s also no secret that a lot of potential home buyers are waiting – for that single moment when prices have fallen to the lowest possible level so that they won’t buy a home only to have the value go down.

It’s also no secret that prices will stabilize when the home buyers start buying homes because inventory will go down, reversing the supply and demand direction.

So what’s going to happen?

From what I can see, the dam of people who need to buy homes has to start flowing soon.  After all, people who started shopping for homes did so for a reason.  At some point that reason becomes more urgent.  Maybe it’s a growing family – or a longer commute, or the waste of renting for those who qualify for mortgages.

At some point, folks who have been waiting – will make the decision that they’ve waited long enough and they will then make the decision to move ahead.  That will start the flow, and the cycle will be back in the direction we all love – up!

Prices are low, mortgage rates are low, selection is large, this is the time to buy.