GOOD NEWS! The housing market is relative. When you buy and sell is relative. Taxes are structured to accomodate the premise that when most people sell their home, they are also buying another one because they need a place to live. There are financial incentives encouraging this timely reinvestment. So, regardless of market conditions, buying and selling in a relatively close period levels the playing field. If you sold in a high market you also buying in a high market. If you bought years ago, the market has likely appreciated significantly.
MORE GOOD NEWS! Look Beyond the Headlines
The U.S. Economy is stable Unemployment is low and has been holding steady at about 4.6% for the last two years. This is better than all but three years in the last 30. U.S. personal income held steady in 2007. Gross Domestic Product is forecast to grow in 2007.
INTEREST RATES ARE LOW
The Federal Reserve Board adjusts interest rates as a means of holding inflation while keeping our economy moving. Over the last 20 years, during tight housing markets, inflation and interest rates have been high, causing or compounding the situation. Currently, interest rates are historically low. Lover interest rates generally equate to lower house payments and may be a strong motivator to sell or buy during a tight market.
MORTGAGE RATES ARE HISTORICALLY LOW
Mortgage availability is restricted, but that applies more to ARMS and subprime lenders than fixed rate mortgages from prime lenders. Despite 2007 market fluctuations, rates have stabilized and are quite low by longterm standards. Lenders are more selective, and you should be too.
THERE WILL ALWAYS BE OPPORTUNITIES TO SELL AND BUY A HOME---MAKE SURE THE TIMING IS RIGHT FOR YOU AND SEEK THE ADVICE OF PROFESSIONALS.
Comments(0)