Why home buyers should act NOW
In spite of the negatives in the media, the housing market has several positive conditions smart buyers are jumping on now...
- Low prices. The fact home prices have dropped is unfortunate for sellers and the economy, but for buyers it presents a golden opportunity they may never see again. Today's low prices mean buyers can get MORE HOUSE and a BETTER NEIGHBORHOOD than they've been able to afford before.
- Fantastic rates. Mortgage rates are at 37-year lows. We may not see rates like this for a long, long time. Each 1% drop in interest rates roughly translates into a 10% boost in purchasing power. Combined with today's low home prices, this adds up to real values that smart buyers don't want to miss.
- Lots of choice. Today, buyers have lots of options to look at. This is great for first-time buyers who often like to see more. First-timers are also in a great situation because they don't have a home to sell. But all buyers benefit from choice... they have a better chance of finally getting exactly what they want in a home!
- Negotiating leverage. Buyers who hate to negotiate will be relieved to know that in today's buyer's market, they have all the leverage. So it should be a lot quicker and easier for them to negotiate their best deal right now.
- Bottoming signs. All down cycles eventually turn around. No one knows when, but there are encouraging signs housing prices may be stabilizing in parts of the country. Recent numbers from the Federal Housing Finance Agency show home prices UP 0.6% in the Mountain states and UP 0.2% in New England. Imagine that!
Bottom line: buyers have a fabulous opportunity to purchase a great home they can really afford - low market prices - at great monthly payments. But it won't last!
Interest rates have already lost some ground in the past few weeks, Still GREAT, but slightly higher than previous weeks.
Remember to advise your buyers that Real Estate is a long term investment, not a get rich quick scheme. If your buyers think their plans may make them sell in a year or two, it may not be a great time to buy. But I do think that we will all look back at this period and say "Wow, what a buying opportunity that was!"
Have a great week end
Rob
Robert Rauf
(732)223-1630 x102
Real Estate Mortgage Network
NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey
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Now is certainly the time to buy. But NOT if you think you will sell in a year. A healthy Real Estate market grows with inflation.. and is truly a long term investment.