Real estate market is better for buyers than it has been in years!

The real estate market is better for buyers than it has been in years.

The seeds of real estate recovery have already been sown.

Despite what you the media is reporting about the real estate market, it is a good time to buy a house right now.

 
Have you ever heard of a Real Estate Tri-fecta? 

That's what we are experiencing in the current real estate market.   A buyer can "win" in these three key categories:

1.) Number of homes available  
2.) low interest rates
3.) reduced prices 

That is a Tri-fecta and this is the first time we've had a tri-fecta of this type in the modern history of real estate.

1)  We have had a high amount of inventory of homes for sale since last summer.  It often takes 90 to 120 days or more for homes to sell in this market.  This benefits you, the prospective buyer, because you have a large supply of homes from which to choose.  The selection is better than it has been in over 15 years.

2)  If you have good credit and some money for a down payment you should be able to get a 30 year loan with an interest rate of 4.8% to 6.0%.  In the early 1980's interest rates on 30 year mortgages were 18% for a fixed rate and were about12% to 15% for adjustable rates.  In the later part of that decade and the first part of the 1990's the fixed rate was still around 10%.  Interest rates are cyclical and since rates are near their 40 year low economists are predicting that rates will not stay this low for long and they will eventually begin to increase.

3)  The prices for homes are lower than their peak in 2005.  It is possible that they might drop more, but it is really not wise to wait for that to happen because even if prices drop another 5%, or even 10%, you could still lose money in the long run if interest rates go up by 1% while you're waiting for prices to fall.  You also need to keep in mind that the price drops are measured by the average of all prices within an area.   I am seeing some really great deals that are way below market value in our area almost every week.

Add to this tri-fecta the $8,000.00 first time home buyer credit that is available. This is a true credit, rather than a no-interest loan.  If you have not owned a home within the last three years, you are considered a first time home buyer. 

So if you are thinking of buying, contact Sybil Campbell at 757-897-5889 with the details of what type of house you want and a search will be set up for you free of charge so that you can see when a great deal us available. 

Contact a mortgage professional so that you can be pre-approved and ready to make an offer when the right "deal" comes along, because when the really good deals become available there are usually lots of people who have been pre-approved for a loan and are ready to buy.  And lastly, don't wait!!  How many times have we said, "I wish I bought more real estate back in the mid-90's before prices shot up?!  Well, now's your chance.