The world changed on September 15, 2008. That's when Lehman Bros. went down and that was followed by a collapse in the financial markets worldwide. Banks followed with tighter credit and especially on home builder construction loans. New home production was 70% slower since 2005. There were only 554,000 homes started in 2009-- the fewest in any year since World War II. There was little change in 2010 according to the U.S. Census Bureau.
Subsequently, new homes have built at less than half the rate needed to match the natural popluation growth over time. And...given how long the development process takes, it could take time for builders to ramp up production again. Therefore, some economists and industry experts have predicted that buyers may encounter a more limited supply of homes and rising prices in certain high-demand areas as soon as the end of 2011 as reported in Harvard University's The State of the Nation's Housing 2010.
What do you think? Is this a good time to buy a home?