It is a GREAT time to BUY!

One of my most frequent question I recieve from my clients is:

Is it really a good time to buy?

In my opinion it is a great time to buy, and here are some reasons why.

For many reasons, now is an excellent time to purchase a home.  There are many factors that work in favor of homebuyers, especially those looking to make their first home purchase.

  • Housing affordability continues to improve consistently. In fact, affordability is as high as it has been since 2003.

  • While the number of homes on the market has started to decrease,  home buyers still have a wide variety of homes to choose from. This makes it more  likely buyers will find their dream home.

  • Despite the news headlines, mortgage money is still available.   The government has many initiatives underway to ensure that mortgages flow to qualified customers. At Weichert, nine out of 10 people that come to us are approved for a mortgage.

  • First-time buyers can now take advantage of a limited-time opportunity to receive a tax credit of up to $7,500 when they close on a home purchase before June 30, 2009.

Freddie and Fannie Reevaluating Foreclosures

Freddie Mac and Fannie may will be halting foreclosures starting in late November.   These financial institutions will evaluate borrowers who might meet certain criteria included in a newly released loan modification program.    This brief reprieve, will end in early January.  

This will not effect everyone facing  foreclosure.   The media is reporting that just over 15,000 homeowners will receive the benefits of this plan.

Are Foreclosures Really a Good Deal

As we continue to go full speed ahead into this housing crisis.   I  still receive many questions  concerning the “deal”  foreclosed homes may or may not present to buyers.  

Just recently we  have seen a change in the buyers we work  with.   Last year at this time  all  I would hear was, show me a foreclosure…But now,  the majority of  our buyers  actually want to see pre-owned or new construction.   I have also noticed a trend with the  prices  of  pre-owned homes and new  construction.   They are becoming very  competitive with foreclosure prices.  

Now that the election is over, we will see an upswing in real estate.   Due to the fact that we  live in such a transient community, people will be moving in and moving out.   This will cause prices to go up.   Now, prices are not going to reach the peak of 5 years ago, but  there will be an increase in  demmand, and that is good news for all of us!    

Lenders Have Started to Tighten Up!

This week we have seen reports in the media concerning the way banks are changing the way they do business.   This is in direct response to the housing and economic crisis our nation is facing.   Financial institutions are tightening up on all types of lending including home mortgages.   Banks are expecting higher credit scores.

In a survery released by the Federal Reserve,   about 70% of banks taking part in the survey  said they had tightened lending standards further for prime mortgages.

It is good to see this information being reported in the media.   I have seen a tremendous amount of change in the lending industry over the past 3 months.