Everyone is asking, "When are things going to return to normal in real estate?" Most don’t realize that we are getting very close to a normal market now. It’s taking a while to recover from the shady financial dealings that created the artificially inflated markets of five years ago.
The poor lending practices of the past are indeed making it more difficult for some to secure financing, but that's not necessarily a bad thing. Those few years of lower standards and easy money led us into an unsustainable and inflated market. In the long term, it's good for housing and for the economy when banks become interested in whether loans will be repaid.
We are rapidly approaching the traditional normal market where home prices are stabilizing, the number of sales has been increasing, and more people are realizing the benefits that homeownership offers, for both personal and financial security. Because of historically low interest rates, affordable prices, government incentives, and motivated sellers, the housing market is experiencing solid signs of recovery.
All of these factors combine to get new first-time buyers the ability to afford a home and many are excited about a purchase. As these consumers enter the market, they will trigger other purchases, and the chain of transactions grows. Expect your real estate representative to reveal a wide range of affordable choices and guide you toward securing the financing you need to make your dream come true.