I think this is absolutely the best time I can remember to buy a home. Why do I say that?
Interest Rates
Interest rates are great. They are up about 1 point to a 1.5 points above their absolute lowest level. When they were at that very lowest level there was a frenzy to purchase and so buyers were paying a premium for homes and not getting any concessions. They got a slightly lower interest rate but more than made up for it in other costs.
Builder Concessions
Some builders right now will pay your closing costs and throw in other concessions like a new fence, refrigerator or other upgrades at no cost to the buyer. Some will even pay your mortgage for you for 6 months. So right now you could move in a home with virtually no money out of your pocket and not have to start paying for your home until 2008. This sounds like some furniture liquidation deal but it is really an inventory liquidation for builders so they can stop paying the bank interest.
Resale Concessions
Home sellers know it is a tough market out there and are pricing their homes more competitively and are also willing to help with closing expenses and other costs.
This situation will not last forever!
Housing starts have slowed considerably and at some point the slack will come out of the chain for the abundance of inventory. Also at some point these interest rates will go up. They have already begun to start up.
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I could not agree more
I would love for YOU to share THIS BLOG with the world!! What are they waiting for??? The media keeps talking dirt and we're suffering from it. GOOD POST...
I have always had the mindset that people have to do what is best for their lives, not listen to the media. If due to some circumstance of their life they need to buy then it is the best time for them to buy. If everyone looked at it from that standpoint then everything would normalize and get back on track.
Every market is different. Here in the Austin area you may get some deals in the $1 million and up range farther from the downtown area, but much of the rest of this market is a seller's market. Is it still a good time to buy? Absolutely.
Sam - are as many homes being sold as in 2006? We are a little over built in our area and the number of homes selling is far less. Also, the price range selling has moderated. The $150,000 to $200,000 dollar homes are dominating sales.
Wayne,
I agree - it's the media that is convincing the consumers that prices will drop lower. I've had 5 listings this year where the sellers made the decision after the agreement expired to put the property into a rental program. They seemed to be priced right, but in each case, we were not getting offers, despite (in two cases) LOTS of showings. Told me that the property wasn't showing right for the investment, but in all of the cases, it was simply the fact that we have 30% more listings this year than last year, and then it just becomes 'How low can you go" on the price side of the equation.