Economist say 2008 is looking better.
The 2007 the year for challenges in Real Estate is almost over and according to economists 2008 is looking bright and healthy for serious homebuyers. Nationally homes saw a decline of 1.5 % in market value, but markets like Utah, North Carolina and Tennessee that have been appreciating all along and might even be undervalued.
We all have to be reminded that real estate markets in most cases are local. The catalysts for the drive can be local businesses, jobs, retirement, second homes and investment.
According to an economist sub-prime loans are only 10 percent of mortgage loans, but accounts for some 40 percent of current foreclosures. New FHA loan limits are being proposed, which are to help moderate-income buyers. GDP growth is expected at 2.8 percent and job growth 1.1 percent in 2008 with inflation under 3 percent and interest rates should rise only slightly. For buyers that desire home ownership for the long term, housing is still the best investment.