The Chico market has ‘felt’ significantly busier the last few weeks – we’ve personally listed four properties and sold three, but is it indicative of a ‘trend’ or just a seasonal ‘bump’? Some prognosticators are forecasting a ‘turn’ in the market.
According to Michael Brush in an article for MSN Money, eight months of rising home prices has buyers itching to make a deal while prices are still low. Expert investors such as Warren Buffett, Michael Rehaut of JP Morgan Chase and George Putnam of The Turnaround Letter are now actively considering investments in residential housing. They stress that savvy investors are getting in early, with a time horizon of three to five years.
More conservative investors like Stu Feldstein of SMR Research expect a moderate pickup in the next two years followed by a stronger recovery during 2012-2015.
Low housing prices, low interest rates and pent up demand are all factors being considered in these rosy predictions. The true test should come in May, as Federal Home-Buyer tax incentives expire…then we’ll find out how strong our market really is!
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