Why Now IS The Time To Buy!!
Are you tired of sales people telling you that now is the time buy?In most cases, the purchase can wait. But, that is not true for real estate. If you are renting and considering owning your own home, this is the time to act! Here's why...
1) Selection, Selection, Selection! In real estate, the market either benefits the sellers or the buyers (sometimes both). During the past decade, the sellers have been in the driver's seat. In today's market, there are more sellers than buyers (meaning that this is a buyers market). There is an over-abundance of homes and condos on the market. There are many options that are available to today's buyers.
2) No Bidding Wars! During the past decade, there were more buyers than sellers. During this period, many buyers were bidding on the same properties. In economics, when demand exceeds supply, the price will increase to meet the demand. In today's market, there are more sellers competing for a single buyer. Therefore, buyers are able to buy their own home for a more reasonable price.
3) Buyers, You Can Make An Offer! Since it is rare to find bidding wars in today's buyers market, sellers are finding that they are the ones that have to provide incentives to buyers. Nationally, the sell price versus list price ratio is about 96%. In addition, sellers are providing incentives to buyers in the form of closing cost credits, pre-paid condo dues, and many other creative packages. Therefore, a seller will not be insulted if you 'make them an offer they can't refuse'.
4) Real Financing Is Available! Creative financing programs (sub-prime loans, etc.) are a thing of the past. Fixed-rate mortgages are back with lower rates (6.375%* - the lowest rates reported in Wisconsin since the fourth quarter of 2005**). FHA financing and state-operated programs (e.g. WHEDA) are back in business.
5) Real Estate Is An Investment! Real estate is one of the biggest investment purchases you will ever make. Similar to the stock market, there is a preferred time to buy and a preferred time to sell. Investment brokers will tell you that you should buy low and sell high. In today's buyers market, the price for real estate is low. Not only are housing prices down, interest rates are also declining. These two factors rarely move down together during the same period. Your dollar has never gone so far in the real estate market.
One of the concerns I hear from buyers in today's market is the stability of the real estate market. Most feel that they would rather wait until the market improves. In other words, it seems that my buyers are telling me that they would feel more comfortable buying a house or condo when real estate prices are beginning to rise.
If you are considering a purchase, now is truly the best time to act!
Please contact me at dray@shorewest.com or (414) 412-7980 if you have any questions or concerns regarding today's buyers market.
* Rate quoted from Wisconsin Mortgage Corporation on October 19, 2007 for a no-point, 30-year, fixed, conventional mortgage. Terms are subject to change without notice.
** Mortgage trends (national and state) are provided by Yahoo! Finance.
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Labels: Real Estate
posted by David Ray @ 10:19 AM
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