When is the real estate market in the US expected to improve?

In the US many will say there was a housing boom and then a housing crash. If you look closely you will find many cities were house prices have been flat for many years so no boom ever took place in those communities. Large parts of the Midwest fit the description. Detroit say house prices start to fall when the auto industry was having problems in the 1980s, and recently. Neither time did Detroit prices track the national averages. The local employment picture mattered more.

There are communities that recorded a rising average house price for all of 2007 and into 2008. Many communities say large falls in 2007.

Nationally the US housing market tends to respond to the economic condition (growing economy vs. recession) and to the level of interest rates. If the economy is growing and rates are low (long term rates) then housing will do better compared to when the economy is weak and interest rates are high.

There is no way to predict when all of the US will see rising prices. Likely it has never happened in the past so not all that likely in the future. Some specific markets are down a lot so they are more likely to hit bottom sooner than some markets where prices are still rising.

Prime locations, good schools and more jobs than workers is where you will find the best housing market.

First answer by Old Jim. Last edit by JohnCorey. Contributor trust: 44 [recommend contributor]. Question popularity: 15 [recommend question]