For the rest of 2005, housing prices will continue to move upwards in major markets -- appreciating from two to eight percent -- across the United States, according to economists from the USC Lusk Center for Real Estate.
Reporters covering the housing markets nationwide can find expert sources on a number of issues:
-- The waiting game may not pay: Potential buyers "sitting on the fence" waiting for prices to drop should consider making their moves before the end of the year to take advantage of tax breaks from mortgage interest and property taxes. No housing bubble is going to burst and prices are not going to suffer a precipitous fall. But buyers need steady income and job security before assuming adjustable rate mortgages and interest-only loans.
-- Financing is driving the market: New mortgage instruments continue to lure buyers into the higher priced markets with 40-year terms and interest-only features that last for 10 to 15 years. Current home mortgage applications are at record levels, according to the Mortgage Bankers Association.
-- Fundamentals argue for more of the same: Despite a slight increase in mortgage rates last week, significant job growth will continue to drive demand in Los Angeles, Boston, New York and Washington DC while a shortage of available land limits supply.