Today we get more information about the tough housing market. We see from the AP today their news story and headline:
http://finance.yahoo.com/news/December-home-sales-down-apf-2729493334.html?x=0&.v=6
December home sales down nearly 17 percent
Home sales plunge nearly 17 percent in December after tax credit deadline extended
I thought we got the message the month before that sales were up and we were out of the woods!!! So, we are getting a ton of conflicting information. Maybe the fact that major holidays and blizzards occured in December could have had something to do with the drop in home sales. That aside, it comes back again to jobs!! Jobs make the world go around and provide income to purchase homes. That and that alone is the key to jump starting the housing market and our economy. THAT is where the focus to recovery should be-everything else is secondary.
Also, this week we learned that FHA (the primary provider of loans these days) has a better than 10% default rate. In order to preserve themselves, we find out that mortgage insurance is increasing, down payments are increasing, credit scores are increasing, and debt to income ratios are decreasing. This means fewer people will qualify and fewer homes will be sold, which means prices will continue to slide--unless of course this is offset with more jobs and these folks turn into home buyers.
So is this post about gloom and doom or Opportunity? It is about opportunity. IF you believe that the market will rebound sometime in your lifetime, now may be the BEST time to purchase a new home. Only with hindsight can we be sure. But, by then it could cost you more. The first time buyer credit and existing home buyer credit are in place until April 30th 2010. NOW is the time to act upon the deals. I am working hard to make it happen and the results are encouraging. I have sold 3 homes this month and have 3 very close to being put together. This could be an amazing January. Yet we hear it is the worst of times. Life is really what you want to make it. Visit our websites if you are looking for Twin Cities real estate or need to refinance your MN mortgage.
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