Full size image from Star-Tribune here
“We are getting closer to a real and nominal price bottom…many local markets have probably bottomed and are in recovery.”
And now we are starting to see confirmation from the local real estate data stream, via the Star-Tribune, which shows that 15% of twin cities communities have seen prices rise in the last year.
Of course, this is not exactly the time to declare a full-throated real estate recovery. The fragile state of the economy, foreclosures, negative equity, and tepid job market will act as a strong headwind, and some of these gains could even be reversed in the short run.
But it’s worth pointing out that despite these challenges, over 30,000 pieces of real estate will change hands in the Twin Cities this year, and many home buyers will one day be quite happy that they took advantage of this unusual confluence of super-low mortgage rates and bargain prices.
This is not to say that everyone and anyone should be out there buying homes (lest they miss out on “THE OPPORTUNITY OF A LIFETIME!!!) Only that if the circumstances of your life make buying a home a priority, this is an awfully good time to do it.
Because here’s the thing: By the time the real estate recovery is locked-in, rates will be much higher, and the best deals will be gone.