Maybe, Just Maybe...

There has been much conversation over home values and when will we hit the bottom. Three years ago, just before the housing bubble began its rapid delfation, income to home value ratios were at a staggering 4.5. Current data shows that median selling prices for new and existing homes combined now equal 2.9 times median household incomes, nationwide. According to historical data, this is exactly the ratio that prevailed during the booming 1980's.

Although nerves over the economy could keep many potential homebuyers on the sidelines, this latest housing data suggest that home prices may actually be stabilizing.

A recent article by chief economist Irwin Kellner of Marketwatch, suggests that home prices are closer to stabilizing than any time in the past nine years. Combining that with attractive interest rates, unlike in the 80's (if you recall), maybe, just maybe, this is a GREAT time to consider a home purchase.

2009 will be a good time to buy

Many consumers are wondering when will the real estate market hit the bottom and when should I consider purchasing...well I think we are about there. Many agents are actually experiencing an increase in showing activity and contracts since the beginning of the year. A recent forecast from Moody's Economy.com suggested that the Chicago region will be hit less than other markets. They have estimated that the three year drop for single family homes which should begin recovering in 2010, should hit 17.1% before recovery begins. The average decrease in rthe area has been 13.3% since mid-2008 compared to a national decline of 21.3%. Check out a recent article from Crain's that includes a nice graph comparing major metro areas.

So we may be getting close afterall.