Have We Hit the Bottom?

Posted on: June 22, 2011

We’re talking about the housing market, and the answer is YES, according to Russell Price, senior economist with Ameriprise Financial. Price explains that we are currently in the process of forming a bottom, and this is the year that we will see the lowest number of existing home sales and lowest average home prices in the United States. However, Price forecasts that we will see these numbers improve during the second half of this year.

One positive indicator of our market is rental rates, which are rising because rental vacancy rates are falling. Another positive indicator is affordability, which is currently very high. The true bottom of the housing market will be indicated when interest rates start to rise.

All of this is great news for home buyers. If you are new to the market and looking to buy, conditions are rarely going to be better than they are today. Nonetheless, there are a couple of limiting factors: buyers must have job security, as well as a down payment of 20%, which banks are requiring in today’s market.

Looking forward, the skies are bright and sunny. Price explains that in 10 years, most people who bought during the downturn will have a good amount of strengthening equity in their home, housing prices will be higher than they are today, and the economy will be better. As a result of all of these factors, people’s financial position will be strong.

The bottom line is obvious… Don’t Hesitate, Now is the Time to Buy!


Whether you are buying or selling, it would be my pleasure to represent you!  Please call or email me today to review your real estate needs!

Contact me, Carolyn Smith at:

Phone: 321.271.0870



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Your Coastal Estate Team: Carolyn Smith, Realtor & Bridget Sentz, Realtor

"Your Coastal Estate Team"

Contact Carolyn at:

RE/MAX Olympic Realty
445 Fifth Avenue
Indialantic, FL 32903

Direct: 321.271.0870
Fax: 321.574.3044


Contact Bridget at:

RE/MAX Olympic Realty
445 Fifth Avenue
Indialantic, FL 32903

Cell: 321.537.5720
Office: 321.952.4000


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