It is my understanding that the Fed QE has been extended and is now tied to specific job growth not a date. That being said, Fed QE is not sustainable and it will end. When it does, interest rates will go up. How much will depend on how healthy the banks and the economy are. But each point that the interest rate goes up will reduce the buying power of the purchaser, this will have a chilling affect on buying as I believe that salaries and wages will NOT be going up to compensate, consequently it may also have the affect of flattening home values. As is the case now, there will still be cash buyers that will not be affected and therefore certain areas will see a lesser impact than others.
Happy New Year!
-Low Mortgage Interest Rates
-Low Housing Inventory
-Low ratio of short sales/REOs in area
Attached is 2013 Forecast with updates:
Gail Mercedes Cole
Have a great day,
Heather Paul, Realtor
Many sales, prices going up!
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