Thank you for your question. As a Realtor who specializes in market trending and annual market predictions, I must say I really love your question. The problem with answering it is twofold, first, we need to specify the market area because the market as a whole is not only geographical, but also cyclical, meaning depending on the area, time of year, even if it is an election year, it will have an impact on market trends and predictions etc...each market will have a different outcome. Second, until we have a clearer idea of the intentions of lenders with the current inventory of foreclosures that have not hit the market yet, we canonly spectulate on what the effect will be based on our best assumptions.
There are areas, particularly in the Southern and Mid Western States, that have HIT BOTTOM. They are seeing inventory numbers falling off to normal timeframes (for example, instead of 14 months of inventory they see 4 months).
One of the key factors I try to educate buyers on is that the COST of buying a home now verses next year with a current interest rate as low as 3.6 percent is if that rate increases just a half a percent, even if home prices fall...the cost of buying that house a year from now at a lower price will actually cost you more money then buying it now with a higher price and a lower interest rate...
I hope this information helps you. Thank you again, and have a great day.
Smith an Associates