Record low interest rates mean that it is a great time to get a loan. However, the other factor that comes into play when deciding to buy or invest in a home is the price level of homes. As we all know, home prices have come down dramatically in nearly every market. This is in part due to the high number of properties available for sale and the, relatively, low number or buyers.

There may be a change on the horizon. While most people do not expect home prices to shoot up any time soon, there may be more stability and possibly some minor increases in prices. This is a result of the lower levels of available homes. A recent article in the Wall Street Journal stated that inventory levels dropped by an average of 22% nationwide. Of course the amount of change in the housing inventory varies depending on the city and state, but the trend is fairly evident. If this trend continues, it should be expected that prices would increase, even if it may be slightly.

Maybe we are on the road to recovery???