http://www.lowellsun.com/ci_11030737?IADID=Search-www.lowellsun.com-www.lowellsun.com
(The lowell sun article)
http://extras.mnginteractive.com/live/media/site105/2008/1120/20081120_102116_11-20%20mortgage.pdf
(This link contains data from various towns and zip code in the greater lowell area)
This is an interesting article from the Lowell Sun. It talks about homes that were bought in the past 5 years. It says 1 in 5 homeowners are underwater that bought in the past 5 years.
Over the past 7-10 years there is appreciation. In some segments we are at 04 levels and in others we are at 2002 or 2003 levels for pricing. You really can't lump all the data in like that and get and accurate reading. You also have to consider from 1999-2004 many people had the benefit of doubling values. This is not normal appreciation. You can not just focus on the negative.
A home is not a stock that is day traded nor should not be viewed as one. It only matters when you are trying to sell it. Unless you have to sell do it is a monthly payment for a roof over your head wih a tax benefit you would not get renting.
I feel this is another negative media article that is scaring people not to buy. The facts are simple, there has never been a better time to buy. Rates around 6.0% and a ton of options for any buyer. We have never seen his combination of good rates and prices. Would you rather buy at historic highs (2003-2005).....or would you rather buy now and do nothing but go up??? Long term, Real Estate is still a great investment. If the article showed the past 10 years virtually every segment you would have shown positive appreciation numbers.
There is plenty of money to lend for qualified buyers. FHA loans are a great for buyers only requiring 3.5% down, not to mention the tax credit of 7500.00
Worried about a job and a recession??? An average real estate transaction employees 26 people. That is great for the economy. 2 Realtors, an appraiser, title examiner, attorney, home inspector, underwriter, rasfer tax stamps to the state, not to mention you shopping at home depot and so on. There is nothing more stimulating to the economy that a home sale. Fixing the economy starts here with home sales.
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