Motivated Sellers and Inventory
Now is an ideal time to buy, in most markets prices won’t go any lower and there is an abundance of inventory.Inventory of homes for sale is at a 15-year high. There are many options out there for many buyers and many sellers who are willing to negotiate and work towards a win-win situation that works for both parties.
The Market is Getting Stronger and Every Market is Different
Remember that all real estate is local and that all markets are different. There are opportunities out there for a buyer if you’re willing to look. The new Homebuyer Tax Credit contained in the Housing and Economic Recovery Act of 2008 amounts to a 15-year, $7,500 interest-free loan. The credit is available through July of 2009, meaning qualified buyers only have a short window of opportunity to take advantage of this special program.A modest recovery for existing-home sales is expected in 2009. Pent-up demand, coupled with an abundance of safer mortgage products, will lead to near-term market improvements. The Emergency Economic Stability Act enacted on October 3, 2008 will help to improve credit markets and allow housing to lead the economic recovery.
FHA Loans Set to Increase
There are many choices for buyers looking for mortgages in this market. One option, FHA home loans, are a viable alternative for many first time buyers. The Federal Housing Administration (FHA) — which is part of HUD — insures the loan, so your lender can offer you a better deal, offering low down payments, low closing costs, and easy credit qualifying. FHA market share for home purchases are expected to triple over the next 3 years, from an estimated 4% in 2007 to an estimated 12% in 2009.
Go towww.REALTOR.org and do a search for Consumer Literacy.
Benefits of Ownership
Owning a home is the American dream. It not only provides amazing tax benefits but it also provides shelter and security to families. Did you know that:
Housing Market Facts
NAR has created a new website www.HousingMarketFacts.comto help consumers find out the latest information about the housing market and the issues that affect you, information specifically for buyers, how to do more research, and learn more about the benefits of home ownership.
Mortgages are at Historically Low Rates
For buyers who qualify,mortgage rates are near historical lows. They are hovering right around 6%, the same as they were 45 years ago. According to data provided by Freddie Mac, rates so far in 2008 are averaging 5.88% vs. a 2007 average of 6.41%.
Go towww.FreddieMac.com and look at the Primary Mortgage Market Survey® for more information on the latest rates. In addition, low interest rates, coupled with recent corrections, give people looking to upgrade a unique opportunity to take advantage of market conditions.
The Value of Your Investment
Despite some contrary media reports and some moderate losses in value in the short-term,home values long-term have and will continue to rise. Real estate is a long-term investment. Over the past 30 years, the median price of existing homes has increased an average more than 6 percent every year, according to historical data from NAR’s existing home-sales series. Thanks to the power of leverage, a homeowner’s return on investment is even more impressive over time. Visit www.HousingMarketFacts.com to learn more.