Rock Bottom

               A common trend that has been occurring with the real estate market is that prices go up in the spring and the summer time and then drop back down towards the end of the year.  The demand of buying homes goes up in the spring and summer seasons.  But why is this happening?  Is it the warmer weather outside that is making people want to get out from their cozy winter blankets and start something new?  Or it might be that the Christmas season is over and people get the itch for another pricy purchase.  Either way, this year home prices have risen almost 10% since February according to the article Here's More Evidence That Home Prices Have Hit Bottom.  This article is saying that this year the common trend won't hold true.  If fact we've already hit our lowest housing price for the year!  The anticipation is that our lowest price has already occurred and prices won't drop that low again this year.  The jump this year is too incredible.  At a 9.6% growth in price there is a slim chance that the pricing will fall by this much.  History does tend to repeat itself and there have been a lot of incidents in the last 20 years that were never anticipated.  There may be a short fall in the winter but in the past three or so years there hasn't been a fall as much as 9.6% which makes us certain that we have already met our low price for the year.  There is a basic idea behind why so many are choosing to buy homes.  Mortgage rates have been recently low.  This could be the main factor behind the sudden spring for home buying.  If mortgage rate start to rise again then the demand for purchasing homes may slowly go down.  It will be very interesting to see what happens to the prices and demands of homes over the next few years. Here is a website that has further information about mortgage rate.