A great article this week by the Wall Street Journal titled, Why its Time to Buy. This is a must read in my book.
Well written, thoughtful and an in depth look at what is happening in real estate 2011 and where we go from here.
- While overall prices fell 7.5% last year, take the foreclosures out and its a mere .5% which is many cases is just off the bottom.
- Household formations expected to rise and of course this impacts entry level buyers coming into the market.
- Home prices to income, homes are more affordable today, 12.5% lower in fact than the period 1989-2004 average.
- Rising rents and falling house prices make home buying more attractive.
- Signs of how a stronger job market could fuel housing sales are evident in Dallas, which had the largest job gain in the nation last year,
- Credit is anticipated to remain tight over the next six months, but improve over time, bringing more buyers back into the market. And of course there are these under 5% interest rates that just are not going to last.
- Psychology of owning a home, there are still many folks in America that are afraid, the uncertainty of our economy, their job, where will prices go will impact many buyers. But there will be many others who see the opportunities, understand that buying a home is a long term investment and will pull the trigger.
We had a strong month of May in terms of pendings in Amherst NH home sales, up 171% in fact. We will monitor and see if the pattern continues as it obviously indicates a recovery in the Amherst NH home market.
Need to sell your Amherst NH home? Call me today.
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