Will House Prices Rise over the Next Few Years?

The new stimulus plan enacted by President Obama last week will pump trillions of dollars into the economy. Whether or not this is a good thing remains to be seen. Some economists believe that this increased government spending will result in an increase in inflation. That sounds bad on the surface, but a steady inflationary trend is good for the housing market, especially if you already own a house. It is possible that all of the “value” lost in housing over the past several years will be regained.

Every trend in the economy is an opportunity. It will be a long time before interest rates and home prices will be this low again, and first-time home-buyers will receive a generous tax credit if they buy this year. This is the perfect time to buy a home; but our reasons for buying a home perhaps need to change. Maybe we need to think of it, not as an investment, but as a place for us and our families to live in and enjoy. If it has the side benefit of appreciating in value, then so much the better.

Because we must fix the economy, and a huge influx of money is the way we’re going to go, then inflation is an unavoidable side effect. Buy that house this year before prices start to rise!

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