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Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time, offers reasons why real estate is likely to improve in 2011. Here are five reasons she thinks consumers should consider a home purchase next year: ▪ Mortgage rates will stay low. Even with rates climbing — maybe to as high as 6 percent by 2012 — they are still well below where they have been historically. ▪ Tax cuts could help. Extending the tax cuts could encourage a more rapid recovery for the economy. ▪ Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment. ▪ Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes. ▪ Homes are shrinking. Homes are getting smaller, which has made them more affordable. Source: Investopedia, Michele Lerner (12/24/2010)