Link to article about the Federal Reserve’s vote to maintain the current rates.
http://cl.exct.net/?qs=eb77745d1f58ae18f7f5e94facb7b0293485d800996869c211b548c7490b0c7a
Highlights of the article:
“Federal Reserve pledges to keeping rates low for an extended period”
Economy is likely “to remain weak for some time”
Fed’s key interest rate has remained near zero since December 2008!
The key is to watch prices in all goods and services. If you start seeing/experiencing increases in prices from milk to real estate, the Federal Reserve will have pressure to increase their rates to control inflation. For real estate, this will ignite buyers to buy since interest rates directly affect the mortgage amount someone will qualify for. I guess the next benchmark is early 2010. Keep looking for the needle in the haystack --- a house with property which can be subdivided at the lowest price possible and hold out for a house built after 2000 to minimize renovation costs for either reselling after subdivision or use as a rental. If you find a property and wish to have fee advice on the development potential, please contact me.
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