This is a realistic and optimistic update on what we may start seeing this year and early next year. It is a great time to buy. Our Client-Sellers will need more updates on this market to feel assured that we are doing everything we can for them to sell at the highest price, yet we just cannot control the market.
Well, it's probably optimistic to start saying the worst is over in this recession...or is it? Traditionally with recessions, one of the primary indicators that we are coming out of it is that goods for sale(in this case housing, since that is one of the primary reasons for the recession in the first place)reach a floor in prices and start selling again.
Basically, that's what's happening. Home prices have dipped to levels unseen for quite some time. As a homeowner, its bad news to know the average sales price in the United States in DOWN 15%. But from a home BUYER point of view...it's a great time to buy a home for considerably less then two years ago. So again...does that mean the recession is receding?
One of the other significant indicators in Unemployment Rates. Unfortunately unemployment usually doesnt decrease until the END of a recession, so its a bit early to say. We didnt have any major layoffs last week...that's the first in awhile. But unemployment rates are still high and will continue to be until businesses start hiring again...a major sign that the worst is over.
But one of the joys of blogging is...I get to give MY opinion. And, if you ask me...I think we still have a ways to go. The last few Sub-Prime borrowers that took out 2year adjustable rate mortgages will have their first adjustment this year, that has been a major reason for the foreclosure rates. Those initial adjustments are significant and can cause mortgage payments to increase HUNDREDS of dollars. Also, there were some(less, but some)3year ARM's and those will be coming up on their adjustment period as well. So, expect another year of foreclosures BUT if people are buying anyway, the impact wont be as much as the last two years.
Banks continue to be tight with their money BUT they are lending to qualified buyers, and with the tax incentives and low prices, this is an incredible opportunity for people to get into a house!
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