Interest rates have been hovering at 5% or lower for the better part of the past year, a trend that cannot be expected to continue.  As the market stabilizes more and the economy gets better, interest rates will rise.  While home prices still may drop in many areas of the country, they will not drop much more.  Areas that are less affected by foreclosures, short sales and REO properties are likely to level out faster than other areas due to the lack of distressed sales in their inventories.  A rise in interest rates may bring real estate prices down to sell but the days of 20% and 30% decreases appear to be unlikely.

In a nutshell now is a great time to buy if you have been waiting for the right time to plunge into the market whether you are considering homes for sale in Myers Park, Foxcroft, Cotswold, Dilworth or any of the wonderful neighborhoods of Charlotte. Take advantage of low interest rates while they are here and the extended home buyer tax credit while it’s still available.  It is a buyer’s market now, it won’t be forever.

An interesting analysis of the real estate conditions and a forecast of 2010 by CNN Money are available.