Sure, the real estate market is less than ideal right now, but we are a tough brood and that means we will perservere no matter how many homes sit on the market for months. The key is to focus on the best trends in real estate right now and those trends are primed to give hope where there was once none. The top 4 reasons to believe in real estate again are:
* Cheaper Mortgages - The cost of a mortgage is cheaper now than ever before. That means more people will be able to afford a mortgage. There are some people out there who have great credit scores but lower incomes. That means, these safe buyers will be coming into your office.
* Low Home Prices - We have all seen the home prices falling and that means more people can afford more home. Look for a boost in sales when these low home prices are bolstered by the cheaper mortgages.
* Less Building - Home builders are not building, but they are stuck with the homes they were trying to sell before the recession hit. This means a drop in prices for these custom built and newly built homes.
* Stimulating Isn't It - The stimulus package is a change that has created a lot of controversy. But, the fact remains that tax implications for new home purchases will get people out of their rentals and into the real estate office.
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I agree with the premise except cheaper mortgages - while the nominal interest is lower when you look at the national average for fixed rate 30 year mortgage, this will change drastically when FannieMae's new pricing guidelines go into effect on April 1, 2009. The costs associated with the delivery of the loan to FannieMae will increase. You will see rates spike for condos, mediocre credit scores, small downpayment, etc. While interest rates are low, the costs of the loans is increasing and eventually rates will increase as lender recoup these costs. So the time really is now to buy.