By Renae Merle
Washington Post Staff Writer
Monday, January 25, 2010; 3:11 PM
Here is the spin from NAR: "It's significant that home sales remain above year-ago levels," said Lawrence Yun, the group's chief economist. "By early summer the overall market should benefit from [a] more balanced inventory, and sales are on track to rise again in 2010."
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Well that settles it. Now's the time to buy.
"If interest rates rise this year, it could make a home purchase too expensive for some buyers, analysts have said."
Prices rise & fall on "affordability". You cannot price people out of homes, especially now that so much of the market is underwater already. The only thing pushing people to buy at a higher price will be higher rents, and of course the buy-vs-rent ratio is still somewhat out of whack (though thanks to 4% interest rates, not too bad in most places).
Also note the zero mention of new construction, or the 2010-2011 peak Alt-A reset wave coming upon us.
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