Investment Real Estate 2010 : What to expect?

In his memo on the economy in December 2009, INSEE noted that house prices have stabilized in the third quarter of 2009 and inventories of new homes were down significantly due to the rebound in sales.

Noting that the level of housing activity is still low, INSEE said however that the low point of the cycle has been achieved recently and the improvement that is emerging for the new one begins to occur also for former homes.

As proof, the Century 21 group who reported a significant rise in property prices over the 4th quarter 2009, an increase in price that follows the one already observed for the 3rd quarter of 0.65%.

Same story on the side of FNAIM, that in a study published Friday, says a rise in house prices of 1.0% in November compared to October with a larger increase for flats (1.4% ) than for houses (0.5%).

Accordingly, while various forecasts made at the end of 2008 had forecast a decline of 10% and higher selling prices for 2009, the decline may eventually be limited to 5% for the whole year: it is far from krack dreaded real estate after several years of significant increases continuously;

Does this mean finding a real estate recovery in 2010, one thing is clear: lower prices seems complete: the element that might contradict this finding is a sharp rise in interest rates during 2010, for the 'moment, economic forecasts are rather in the sense of maintaining rates at current levels or at least a moderate gain.

If the continued rise in unemployment and rise (very moderate) price in the nine can curb real estate purchases, keeping mortgage rates below 4% and the existence of an application unmet housing are the two driving forces pushing for a gradual recovery in the housing market supported by the extension in the Finance Act 2010, the device Scellier for acquisitions of new properties for rental which are not labeled "BBC homes.

In other words, for prospective purchasers, the first half of 2009 is a favorable period for investing in real estate whether for rent or housing.