If you think of your home as a long-term investment, then one should give weight not only to the short term economic outlook, but the long-term outlook as well.
In the near term, we may not see home prices increase substantially, but you can almost certainly count on good gains in the long term. Since 1970, the median home price in California has increased about 7% per year (averaging in the ups and downs of the market). In the years following price drops or years of minimal increase, home prices have jumped more than the average of 7%. Are we set to see that kind of price jump in 2011 or 2012? Perhaps. Even if we don’t, interest rates are likely to rise and the economy as well as the housing market is likely to improve. Will you wish you would have bought or sold back in 2010 or 2011? Call me if you would like a free market evaluation of your home and/or to get detailed market trends in specific cities. 949.525.5905.