Wednesday, January 9, 2008
Now is the time to Buy!
Dear Sue,
My girlfriend and I have been renting an apartment together for the last three years. We both have great jobs and we save our money. My grandmother left me a sizable inheritance last year. We want to buy a house but her parents are telling us to wait because they believe that home prices are going to drop even more.
We are tired of waiting and want to get this party started but we don’t want to be stupid either. My aunt suggested that I get your opinion.
Eager Ed
Dear Ed,
The real estate market is big news right now. We have all seen the headlines, “Record Foreclosures, Sub prime Meltdown, Local Builders Filing Bankruptcy,” you name it. Most of what we see in the media is presented from a negative perspective.
If we look at the same information from a buyer’s point of view, much of what’s going on is positive. The current high inventory of available homes for sale represents competitive pricing and more choices for the buyer.
Interest rates are historically low. They have been hovering at 6%. This is great news for buyers. If you have good credit and the ability to repay you’re in great shape.
Foreclosures are excellent investment opportunities. They are generally priced well below resale competition. Dealing with a lender owned property is much easier than dealing with an emotionally attached home seller.
According to an article written December 30, in the L.A. Times, sales of existing and new homes in 2007 totaled an estimated 6.5 million units, which would make it the fifth-largest sales year in U.S. real estate history. If this trend continues there will soon be a shift towards a more balanced market.
Kenneth R. Harney, a writer for the Washington Post said it best. “At some point in every correction cycle, even in the most depressed markets, consumer psychology begins to change. People who need or want houses look around, see lower prices, affordable financing and say, ‘Hey, this is a smart time to buy:’ The cycle has done its work.”
I believe that this psychology has begun to take hold in our local market. I believe that it is a very smart time to buy. When you see headlines that say it’s a smart time to buy, it’s usually too late!
Buy now. It’s a matter of good Home $$s and Sense.
My girlfriend and I have been renting an apartment together for the last three years. We both have great jobs and we save our money. My grandmother left me a sizable inheritance last year. We want to buy a house but her parents are telling us to wait because they believe that home prices are going to drop even more.
We are tired of waiting and want to get this party started but we don’t want to be stupid either. My aunt suggested that I get your opinion.
Eager Ed
Dear Ed,
The real estate market is big news right now. We have all seen the headlines, “Record Foreclosures, Sub prime Meltdown, Local Builders Filing Bankruptcy,” you name it. Most of what we see in the media is presented from a negative perspective.
If we look at the same information from a buyer’s point of view, much of what’s going on is positive. The current high inventory of available homes for sale represents competitive pricing and more choices for the buyer.
Interest rates are historically low. They have been hovering at 6%. This is great news for buyers. If you have good credit and the ability to repay you’re in great shape.
Foreclosures are excellent investment opportunities. They are generally priced well below resale competition. Dealing with a lender owned property is much easier than dealing with an emotionally attached home seller.
According to an article written December 30, in the L.A. Times, sales of existing and new homes in 2007 totaled an estimated 6.5 million units, which would make it the fifth-largest sales year in U.S. real estate history. If this trend continues there will soon be a shift towards a more balanced market.
Kenneth R. Harney, a writer for the Washington Post said it best. “At some point in every correction cycle, even in the most depressed markets, consumer psychology begins to change. People who need or want houses look around, see lower prices, affordable financing and say, ‘Hey, this is a smart time to buy:’ The cycle has done its work.”
I believe that this psychology has begun to take hold in our local market. I believe that it is a very smart time to buy. When you see headlines that say it’s a smart time to buy, it’s usually too late!
Buy now. It’s a matter of good Home $$s and Sense.
Labels: buy now, real estate market
# posted by Sue Thompson @ 10:17 AM 
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