I continue to be amazed at the tremendous opportunities out there for today's buyers. Consider all the factors contributing to the current buyer's market.
An across the board correction in rising home values. I mean, let's face it; things were getting a little out of hand. It's bad news for sellers who bought at the top end of the market and needed to sell too soon to build enough equity. Relocation companies felt some of the effects of this if a buyout was part of the relo package.
Builders liquidating standing inventory. When the market stalled, it left two choices for builders; lower prices or file bankruptcy. In both cases, new construction prices came down and buyers coming in late to a subdivision benefited from the adjustment.
Foreclosures and short sales galore. Rising unemployment contributed significantly to the increase in the number of foreclosures and short sales. But also, some borrowers are choosing to walk away from perfectly good houses because they are so far upside down in their mortgage versus market value. Banks are taking the hit to get these properties off their books, and buyers are getting move-in ready investments not normally indicative of buying foreclosures.
Let's not ignore the obvious...Tax Credits! Expanding it from first time homebuyers to all buyers is a huge incentive. But hurry, there is a deadline. Up to $8,000 for first time homebuyers and $6,500 for all buyers is set to expire on April 30, 2010. (Transactions must close by June 30th)
Home improvement Tax Credits. Buyers & Investors benefit yet again. If you've picked up a home needing a little TLC, check out the Federal & State tax credits and rebates available for energy efficient building products and appliances. Bringing the home up-to-date with these products has cash value as well as resale value in the real estate market.
Consider the extremely low interest rates and financing programs like the FHA 203K Streamline to help facilitate home improvements and I ask you...what are you waiting for? This is a buyer's market that won't be last forever. Jump in and cash in big!*
*Home Appreciators - Real Estate & Renovations, is a family-owned business delivering a lifecycle of services you and your home! Become a fan at www.facebook.com/homeappreciators for daily updates and other valuable home tips!