Although a number of real estate industry experts aren't fortune tellers and don't own crystal balls, they say that buying a home will never be more affordable than it is now, CNNMoney reports.
Property values have fallen by as much as 34 percent since peaking in 2006 and mortgage rates recently fell to new all-time lows during the week ending May 3. However, experts speculate that these ideal buying conditions won't stay this way for very long.
PNC Financial Services chief economist Stuart Hoffman told CNNMoney home prices should hit their bottom by the third quarter this year before appreciating during the course of 2013. A number of factors, such as a dwindling foreclosure rate and improvement in the job market, are all expected to contribute the future increase in property values.
Meanwhile, other analysts expect values to increase much more rapidly, since asking prices have already risen 1.4 percent in the first three months of 2012.
"This is a strong indicator that we will start seeing home price indexes, like the S&P/Case-Shiller, start to report home price increases this summer," said Trulia economist Jed Kolko.
Foreclosure rate declining
A high presence of foreclosed houses had a major impact on declining home prices in recent years, but as home repossessions cool off, this is expected to help property values stabilize. Currently, the percentage of borrowers who are seriously delinquent - meaning they are 90 or more days late of payments - is falling dramatically. The percentage alone declined 15 percent on an annual basis at the end of 2011. As a result, the total share of mortgage across the country that were seriously delinquent was just 3.1 percent.
Owning cheaper than renting
After the housing market collapse, a number of prospective homeowners were forced to put their dreams of purchasing property on hold, as they waited for economic conditions to improve. This resulted in a spike in rental rates in most markets, making it more affordable to own property then rent in a majority of areas.
"That could have a significant impact on the market overall in terms of providing a rising floor to home values," Clear Capital director of analytics Alex Villacorte told the news source.
All in all, the real estate industry is expected to gain some notable momentum as it enters it peak season for activity.