So the President of the California Association of Realtors is predicting an increase in home values next year. You may think to yourself that this Association is biased and might lean towards a positive prediction - right? Whether or not that is true, doesn’t really matter. What matters is that the predictions are being made and that the media is putting this message out to the world.
If tv and newspapers tell us to feel afraid, we do. If the media tells us that things are going to be ok, we can feel confident again. Since real estate price trends are caused by supply and demand, a confident bunch of buyers, means an upward trend in prices.
That’s my opinion. Here’s the article regarding the house price prediction from Bloomberg.com.
California House Prices Forecast to Rise in 2010, Realtors Say
