VA Home Buyers Nationwide: Home Prices Set to Increase

On May 19, 2010, in Home Buying Process, Mortgage Programs, Real Estate Appraisals, by Joan Rusco

We at VALoansAmerica (formerly VALoansMN) have some good news for Veterans who have recently used their VA loan benefits to buy a home; the experts are predicting your home values are set to increase.

If you’ve read our recent posts we’ve been urging our nation’s veterans and active duty military to take advantage of our still historically low mortgage rates and depressed housing prices and buy real estate. We continue to take that position.

There’s a new study coming from some of the leading housing economists that substantiate our claims that housing prices are ready for a rebound. We refer to research from MacroMarkets LLC. (you can see this study at their website www.MacroMarkets.com).

Over 90 economists surveyed reveals single family homes are likely to see a price rebound beginning in 2011. This is a nationwide trend according to the research. The more optimistic economists say we’ll see about 8% increases in each of the next two years and 10% or better in each of the next three years. If the optimists are correct that would mean today’s house that costs $200,000 would be worth almost $331,000 by the end of 2014. Remember, these are the optimists. There’s a flip side to this; the pessimists in the crowd of economists say each of the next 4 years we’ll see a continuing slide in home prices. Using the pessimistic projections from the MacroMarkets survey you would see that $200,000 home value decrease to $161,000. There’s always middle ground when it comes to home price expectations and the survey of 92 economists by MacroMarkets is no exception. Combining the optimistic and pessimistic projections we come out on the plus side. That projection says over the next four years home prices nationwide will increase in value by about 12%.

But to participate in any of these possibilities you must be a homeowner. At www.VALoansAmerica.com or www.VALoansMN.com you can start seeing what it might mean for you to take out a VA, FHA or Conventional loan to buy a home. Maybe the days of seeing your home as an investment are gone. Maybe we’re returning to the days when a veteran returning from war just bought a house to raise a family. But wouldn’t it be nice if that home also had a nice investment return?

 

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