Tracking US Housing Market’s Rise, Fall & Rebound –USA Today

Source of Data: Moody’s Economy.com
Graphics by: Barbara Hansen, Julia Schmalz, and Juan Thomassie

This article includes fantastic interactive graphics showing trends for five key indicators of the national housing market.    http://bit.ly/5NnUo0
The graphs extend the trend lines to 2013.

As an example, go to the national Median Existing House Price graph and slide along the bar along the yearly index until the point on the graphs shows 1st Qt. 2010. Write down the median price and again slide along the bar until the point on the graph stops at 2nd Qt. 2011. Write down this median price.

As I see the graph and information:

1. It shows the median price still has to hit bottom.

2. The Median Price in 1st Qt 2010 (NOW) and the 2nd Qt. 2011 is essentially the same.

If you or someone you know is in the market to buy a home, why would you try to predict the bottom of the market? Remember these graphs are predictions extending into the future and illustrating national trends. These graphs DO NOT reflect your local market which must be analyzed and assessed for price trends. Your market may very well be trending up! Especially investigate the supply in your market. If the supply is dwindling, there will then be pressure on prices to trend up.

However, why would you wait? The Federal Tax Credit disappears in April 2010. Interest rates will start to trend up- see my previous post on interest rate predictions. A drop in the median price is really secondary to any increase in interest rates. The rates will determine how much you can afford to buy. The bottom line--- the Federal Tax Credit, either $8,000 or $6,500 is only available until the end of April. Interest rates are slowly moving up. NOW is the time to buy. Please copy this post and forward this analysis to your sphere of influence. Help your friends and family members take advantage of this unprecedented period of time in housing: low interest rates, over supply, lower house prices, and the government wants to give you money!

Will any of these factors change in May 2010 ---- you bet!!!!