Why now is the time to buy a home?
The residential real estate market is not as complex as the national media makes it seem. Simply put, the real estate market no matter where you live will either be a buyers' market or a sellers' market. Nashville is currently experiencing a buyers market. A buyers market is a market which has more sellers than buyers. Low prices result from this excess of supply. It is the basic economic principal of supply and demand.
According to the Greater Nashville Association of Realtors®, in April 2008, there were 24,670 homes for sell that is an increase of 19%, when compared to April 2007. With increased supply and lower demand, anyone who is financially able to purchase a home should take advantage of Nashville’s amazing buyers’ market.
Tougher lending requirements are one of many reasons why Nashville is experiencing a buyers market. Many buyers are taking advantage of FHA loans. A FHA loan is a federal assistant mortgage loan insured by the Federal Housing Administration. This type of loan can be obtained at just about any bank. According to Steve Johnson, Mortgage Loan Officer with Bank of America, “buyers can obtain a 30 year fixed FHA mortgage with at least a 560 credit score and an above average debt to income ratio.”
With loans limits as high as $432,500 in Davidson and surrounding counties , FHA loans can help anyone in just about any price point take advantage of the buyers’ market in Nashville. Buyers should always get pre-approved before looking for homes, this will help you develop your price range and help prevent you from being turned down for a home loan after falling in love with a home.
With interest rates at a historic low and increased inventory of existing, new, and foreclosed homes there are wide arrays of options for those looking to purchase a home in Davidson and surrounding counties. Savvy buyers will make a great investment by purchasing a home during this buyers market.
Denise J. Beard is a Real Estate Broker with Crye-Leike, Realtors in Nashville, serving the Davidson, Williamson and Sumner County. She can be reached at 615-373-3456 or at www.denisejbeard.com.
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