The Great Market U-Turn Of 2009

Those who have been in real estate for a while already know that when market changes happen, they do so very quickly, especially from good to bad. This year was no exception, but there is good news! Chances are good for a positive turnaround in 2009 and three factors are influencing this prediction.

First, we have a new administration entering the White House, a time when people tend to stop to see what changes the new leadership will bring, and feel a general sense of optimism that good things will happen. Secondly, the stock market is starting to slow its rollercoaster ride, smoothing out to a more even tempo. Historically speaking, a stabilizing stock market has spurred real estate investment. Thirdly, we are experiencing the best interest rates in years and believe it or not there's still a lot of mortgage money accessible for qualified buyers.

Now, lets take all three points and put them together and what do we have? The perfect time for the real estate market to begin its upward turn! How is this possible? Here are several other things to consider: real estate prices are at a level that will certainly help first-time buyers gain access to a home. Furthermore, in some areas properties there are undervalued properties, due to over-correction. Then you add low mortgage rates and a surplus of inventory, and the whole equation adds up to a great time to buy real estate.

Overall, the market is improving every day, with gas prices dropping to record lows that haven't been seen in years, and potential for a 4 1/2% mortgage rate. Optimism is growing daily into a feeling that 2009 is going to be a great year, the year of the market u-turn.