‘Someone Say House Party?’

for-sale-sign.jpgBank of America has come out with a revised edition of their forecast for real estate this year.  In a report titled ‘Someone Say House Party?’ the BofA economists now predict home prices to increase 8% this year even after prices increased over 7% last year.   Several factors are causing this.  Lending standards are easing.  Pent up demand is finally hitting the market as more households (that were renting) are formed.  Another factor is psychology.  So many people hold back when prices are down because ‘no one is buying’.  (hint, that’s a great time to buy).  But once these same buyers see prices increase and interest rates tick up they tend to feel pressure to move into the market.  You haven’t missed the boat yet.  Prices and rates are still super low.  But you’re running out of time.  Give us a call today.

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