The sky was not falling all over America. Big chunks may have fallen in Florida, Nevada and California, but there were only minor specks descending on the rest of the county.

OVER THE LAST 5 YEARS THE OVERWHELMING MAJORITY OF MARKETS CONTINUE TO SHOW A CUMULATIVE VALUE GROWTH. THOSE ARE THE FACTS.....HOME VALUES HAVE INCREASED IN MOST MARKETS.

The Federal Housing Finance Agency released a report right around Thanksgiving. Most headlines focused on the financial mess or the bailout or the increase in foreclosures. This report was overlooked and under reported. It stated that out of 292 metropolitan markets, 273 showed positive net home values over the course of the previous five years. The survey did verify that prices were down 4 percent over the last year but still showed a gain of 29 percent over the last five years.

These are just the facts. If you bought a home in 2003, today it would most likely be worth 29% more than you paid. All the wheeling and dealing that occurred at the end of the boom have created a cloud that obscures reality.

Now, here is the pertinent fact about the study. It only covers conforming loans. It does not cover those jumbo products. It only covers loans backed by Fannie Mae and Freddie Mac. Homes financed via sub-prime financing are not included.

This report should offer comfort to first time home buyers. Most of them will be using loans that are backed by Fannie Mae or Freddie Mac. Most of them will be seeking property that is priced within conforming loan guidelines and limits. Most of them can ignore the ramblings of all the Chicken Little's out there.

Buying a home now is not the risk that the media portrays. Buying a home is not an investment decision but it is nice to know that there is a very good chance that five years from now your home will be worth more than it is today. Buying a home is realizing a dream, security and shelter.

First time buyers should be delighted. Inventory is up, prices are down and interest rates are affordable. It is truly a great time to buy a home. 

If you would like to discuss your goals and dreams regarding the purchase of a home, call me at 301-537-4377. It would be my pleasure to share the truth about the market with you.