Let's take a look at some of the headlines this week. We will hear a lot of the woulda, coulda, shoulda's next year when people wonder why they did not lock into that rate or buy that GREAT home in 2009.
I have recently witnessed multiple offer situations in the Bergen County area --- Oakland, for example --- on homes priced below $450,000. In Mahwah, several million dollar plus homes have gone into attorney review in the past 7 days. ( now we know a lot can happen between now and the closing date but that is a lot of activity in seven days. ) A set of buyers I am working with have lost out on 4 homes that they absolutely LOVED and could afford because they wanted to wait...and think about it.
If you are interested in buying --- Now is the time to do it. Rates are at 20 year lows. Prices are down. And, tax laws have changed to help first time buyers. So...what are you waiting for?
We have to read and understand the NEWS --- to understand that the market has changed --- AGAIN!
1. Mortgage RATES DOWN - Again --- The lowest in 20 YEARS!
U.S. mortgage applications jumped last week as record low interest rates spurred a surge in demand for home refinancing loans, data from an industry group showed on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2 percent to 1,159.4 for the week ended March 20.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.63 percent, down 0.26 percentage point from the previous week, reaching a record low, the MBA said. http://www.cnbc.com/id/29873758
2. Durable Goods UPSIDE SURPRISE
New orders for long-lasting manufactured goods unexpectedly rebounded in February, rising for the first time in seven months, according to a government report on Wednesday that could bring some cheer to an economy mired in recession. The Commerce Department said durable goods orders rose 3.4 percent to $165.6 billion in February, the biggest increase since December 2007, after a revised 7.3 percent plunge the prior month, previously reported as a 4.5 percent decline. http://www.cnbc.com/id/29874481
3. Sales of existing homes are UP!
Existing-home sales increased in February, reversing losses in January. Even so, sales activity remains relatively soft, reflecting additional layoffs and buyers waiting for housing provisions in the economic stimulus package to take effect, according to the National Association of Realtors®.
4. Stock Market RALLY has momentum!
The long-awaited U.S. government plan to rid banks of money-losing assets has injected some desperately needed optimism into Wall Street after stocks hit 12-year lows earlier this month. Judging by the 20 percent run-up in the benchmark S&P 500 index since its March 9 bear-market closing low, there appears to be a burgeoning consensus that some confidence maybe returning to the marketplace.
5. Renters become BUYERS as homes become more affordable
In some U.S. markets, prices appear to have fallen enough to make buying cheaper than renting. Mix that with mortgage rates that are near record lows and renters who want to become buyers are rejoicing.
"The U.S. government is helping bail out those who bought at the top, but I got my own personal stimulus package through falling home prices and low interest rates on mortgages," said Wilusz, who works at Ameriprise Financial.
Real Estate is local --- so you should call an agent who know the local market, knows price opportunities and who KNOWS how to market and SELL your home in this climate. Don't use a crystal ball to predict the bottom. Understand your finances and get the best rates & prices --- particularly in Bergen County, NJ.
Call 201.675.1618 cell or email me at CupaT@aol.com. I am happy to help.