Home prices rose in June for a 3^rd straight month as now expired tax credits inspired a burst of home buying.  However, prices are expected to fall throught the rest of the year now that demand has faded.

Seventeen cities showed monthly price gains.  However, the gains were weaker in such markets as San Diego, Los Angeles, and San Francisco.

Home prices nationally were up 4.4 per cent in the April to June quarter.  That followed a decline of 2.8 per cent in the January to March quarter.  The jump was largely because buyers could take advantage of the $8,000 tax credit.

Home prices have dropped sharply since those incentives expired.  Lending standards remain tight, unemployment is near double digits and foreclosures are expected to remain at extraordinary levels.

Nationally, prices have risen 6 per cent from their April 2009 bottom.  But they still remain 28 per cent below their July 2006 peak.

In my opinion, with over 30 years of real estate investing experience, the market has almost hit

bottom and will start a strong rebound shortly thereafter.  There will be a huge demand for housing since there is a shortage due to a lack of construction going on now for over 2 years.  Plus, the economy will turn around, thus giving consumers confidence to re-enter the market.  What’s going on now is almost like what took place in the 80’s.  Once the foreclosure mess was absorbed, the market made a rapid recovery.  The housing will recover first, followed by the commercial market perhaps a year later.

What does all this mean?  Invest, invest, invest, invest, invest.  You’ll thank me later.

Do It,

Larry Holder

Larry Holder is a seasoned investor who can teach, coach, and mentor you to a lucrative career in real estate.  Contact him at 417  839-6680 or go to legacyoneinc.com for more information.