Analytics firm Clear Capital credits the warm weather homebuying season with the recent moves upward in home prices, but warns that the rest of the year might not continue that growth. Despite a four percent gain in value in August compared to earlier in the year, national home prices are still 6.2 percent below last year’s levels and Alex Villacorta, Clear Capital’s director of research and analytics, believes that “the market is at a critical juncture as to whether it can avoid another significant downturn into the slower buying seasons of fall and winter.” He adds that “the latest readings on consumer confidence paint an ominous picture…at present” thanks to wide-scale uncertainty that is preventing consumers from taking advantage of low mortgage rates and high levels of affordability in most markets.
As prices continue to tumble overall, however, more and more investors are getting involved in real estate both as wholesalers and long-term owners and landlords. Are you making your move this year, or do you think prices have farther to fall?
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