We have all heard the saying, "timing is everything!" There is a lot of truth in that little adage; timing is important. With so many things changing so fast in the housing market, it has also become a mantra for those waiting to buy a home. Many are sitting on the fence trying to perfectly time the moment to jump back into real estate, the moment when home prices are at their lowest but at the cusp of starting the climb back up. The biggest danger for sitting on the fence is never jumping off.
What are some key indicators it is time to get off the fence and buy? The first indication is the $8000 tax credit program which is soon to expire. If you want to take advantage of the program, you should be in the process no later than October 15th to insure you will meet the December 1st deadline! But there is more than just the tax credit program to consider.
Interest Rates: This is one of the major factors in deciding it is time to get off the fence. Of all the incentives to purchase a home now, the low interest rate is the most conducive. Tax credits are wonderful, but your interest rate is with you for the remainder of your loan. In timing your jump, you must consider these historically low rates. John Tuccillo, former Chief Economist for the National Association of Realtors and columnist for The Real Estate Professional, says the "Home loan rates have stayed historically low since the program (Federal Housing Program) began in January. So, this is another variable that could push Bonds down and home loan rates up in the future." (Mortgage Success Source, LLC) Interest rates are at some of the lowest in 40 years! You do not want to miss these rates!
Some of the other information you want to look can be found on your MLS listings. How long are houses staying on the market. What is the fastest moving price bracket? How fast are low priced houses closing and are more luxury homes stagnating on the market? Right now you see low and moderate priced homes moving at a faster pace than before. Home sales are picking up in these price brackets as the bargain hunters are out in full force. They recognize the signs the real estate market is stabilizing. Just like you should take note when they have stopped buying, you need to recognize the time may be right when they begin to return to the market.
Lastly you want to look at your local market, not just the national scene. This is where having a LOCAL real estate professional is critical. They can look at the market and help you interpret the signs for your area. For example, here in Chicago, historically home prices and values track inversely to employment trends. Job stability not only makes it possible for someone to purchase home, but can also cause an increase in commercial real estate sales as well. Chicago also tends to trend BEHIND the national numbers, so an increase or loss in jobs can happen slightly later here.
So, if timing is everything, why are you still sitting on the fence? If you are ready to jump into the real estate market call Karen Breen Elia or Louis Elia at ChicagoCityHomes! They can help you interpret the signs to know if the time is right! Don't get left on the fence! These historic low interest rates will not stay low for long and housing prices will begin to go up!