In today's tumultuous housing market many prospective homebuyers are forced to make some hard decisions in regards to their living space. There is no doubt that the downward spiral of house values since 2008 have made many choose to wait out this market until house values improve. The funny thing about that is there is never a "Warning" sign that the market has "Hit the Bottom" or "Gone through the Roof". It appears to just happen , similar to something "Hitting a Brick Wall".
Many buyers I have met lately are looking to enter the housing market due to several factors such as: relocation, lease term ending, downsizing, move-up as well as financial recovery. But , they all have one thing in common...... they question if prices are going to keep dropping. They don't want to make an offer on a home and then by the time they settle have the value drop right after they move in. This may have been the case if they purchased a regular resale from 2008 to 2010.
The following market trends as of May 2012 are showing an increase in prices, but these are still fairly restricted to various neighborhoods within the region. If you add the increase of homes prices, be they resale, foreclosures or short sales with the fact that more permits for new construction have been issued since 2008 ,the answer is prices are trending upwards.
Factor in the lowest mortgage interest rates that I have ever seen in twenty years , it appears to be the perfect storm for those that are looking to purchase. If the consumer confidence continues to grow even marginally , this may be enough to “Bump up” those interest rates. Buyers will loose their purchase power if this happens and add that a neighborhood and/or community that sees a marginal increase in price and the Buyer has just lost out on the opportunity to move in to their “Dream” house.
Continuing to rent by extending their lease another year , or waiting to take advantage of their companies Relocation package until the last minute may cost them thousands of dollars up front or in monthly payments.
Based on the information that has been available this month , what are today’s buyers looking for ? They should put on their raincoats , grab their umbrella’s and start looking at houses now while before the storm passes.
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