Article By Drew Nichols of Greenville SC Real Estate
Many economists have long been telling us we were in a housing bubble. There have recently been signs that a bubble did exist and is beginning to burst. The signs are on a market by market basis, but looking at the economy as a whole, in the United States, prices dropped for the first time in history between the fourth quarter of 2005 in the fourth quarter of 2006. Granted, the drop was small and hopefully will be the worst economic news we have to bear.
Some economists are pointing to signs that the economy as it relates to real state specifically may be improving. The Federal Reserve, for one, just recently issued a report stating that the United States record low unemployment figures may actually not cause inflation as expected before. What this means to investors is that interest rates could possibly go well or this year for the first time in quite awhile. Lower interest rates will make it possible to get better mortgage terms on investment real estate.
Only time will tell, but if you see interest rates beginning to drop this year, strongly consider doing some real estate investment, or at a minimum get a home equity loan and start doing those improvements you’ve been dreaming of. Just remember that most home improvements will not be fully recouped if you decide to sell.