In today’s real estate market, it’s hard to separate the myths from the realities. Well, here are three market realities that none of the experts or headlines can dispute.
First, there are plenty of quality homes to choose from. According to the TARR (Triangle Area Residential Realty) Report, housing inventory in the Triangle Area has grown, on average, approximately 48% from 2005-2008. Which price point had the highest growth during this time? The luxury home market, or homes priced $500,000 and up, had the highest growth during this time than any other price point. And 60% of these homes are new. So if you are considering purchasing a home in the near future, I recommend looking at new homes, because builders have too much inventory, and they need to reduce this inventory, especially before year end.
First, there are plenty of quality homes to choose from. According to the TARR (Triangle Area Residential Realty) Report, housing inventory in the Triangle Area has grown, on average, approximately 48% from 2005-2008. Which price point had the highest growth during this time? The luxury home market, or homes priced $500,000 and up, had the highest growth during this time than any other price point. And 60% of these homes are new. So if you are considering purchasing a home in the near future, I recommend looking at new homes, because builders have too much inventory, and they need to reduce this inventory, especially before year end.
Second, it’s clearly a buyer’s market and you can get more home for your money. For the second quarter of 2008, 5498 homes listed in the MLS had at least one price reduction. This is a 17% increase over 2007, and a 40% increase over 2005. Now more than ever, it is a great time for buyers to get the home that they have always wanted, at the price that they want to pay.
And third, there are still good mortgage rates and terms available. The news media makes it sound like no one can get a loan, which is both infuriating to me and irresponsible of them. They are adding to the problem, instead of being a non-biased source of information to the people they are supposed to serve. I say this because there are still plenty of funds available for credit worthy borrowers (employed and having “reasonable”, not necessarily “excellent” credit).
What is not a
vailable: “no doc”, “stated income” and “sub-prime” loans. These represent the minority of loans even 2 years ago, and are the type of loan that should never have been created because they often end in default. Most of the 100% loans are gone for the same reason.
What is available: 100% financing (USDA… with some restrictions), very low down-payment FHA loans up to $300,000 (gift money still allowed) along with all the other standard FNMA/FHLMC products.
What is not a
vailable: “no doc”, “stated income” and “sub-prime” loans. These represent the minority of loans even 2 years ago, and are the type of loan that should never have been created because they often end in default. Most of the 100% loans are gone for the same reason.What is available: 100% financing (USDA… with some restrictions), very low down-payment FHA loans up to $300,000 (gift money still allowed) along with all the other standard FNMA/FHLMC products.
And let's not forget about the $7500.00 first time home buyer tax credit! If you, or anyone you know, would like more information on this, just email me or give me a call. You can also read more about this on my website at http://www.liveinraleighmidtown.com/ and click under the Buyer/Sellers Tab on $7500 Tax Credit Info! You can also visit the following site for more detailed information:
In most markets around the nation, home inventory has increased giving buyers a greater choice. At the same time, mortgage rates remain at near historic lows and home prices have either leveled off or decreased for the first time ever last year (2%) according to the National Association of Realtors. It is expected to drop an additional 4-6% this year. This has made home affordability the best in the last 5 years and according to a recent Wachovia study the best in nearly 30 years.
Time and time again, our area has not only been voted as one of the best places to live, but also one of the best places for home investments. If you are considering purchasing a home, either as your personal residence, or as an investment, email or call me today. I look forward to showing you how to make a sound investment, as well as provide a place for your family to call home!
No comments:
Post a Comment