So many figures and news stories these days. Foreclosures and short sales and strategic defaults and bank defaults (yep,over 200 in the last 18 months). Plummeting housing prices, stricter lending guidelines and down payment requirements that are tough for many people (and will get tougher). Affordable housing programs that don't seem too affordablen anymore (i.e. FHA!). When will it end?
I say there's no point in worrying when. I also believe in local real estate trends over national ones. Most of the figures that we're hearing are real, though, and daunting. Over 35% of all mortgages are underwater. It's projected that 15-20 million homeowners will be foreclosing in the near future. Ouch. The "double-dip" is evident. And there's nothing we can do about it.
Many Americans these days don't want to buy a home either because they believe they won't qualify for some reason or they don't want to take out any long-term debt. Both reasons have merit. Because of the rising cost of living and the stagnant level of wages, disposable income is shrinking fast. Without choice, many people are living pay check to pay check so saving money for a down payment seems impossible. Secondly, there is so much uncertainty these days, especially with employment. All jobs seem expendable our have the ability to be out-sourced. How can anyone PLAN for the future, much less the short-term.
With that being said, there are still numerous reasons why it is a good idea to buy a home, even in the type of market we're facing.
1) Lowest housing prices in years. "Discount" is an understatement!
2) Interest rates are at 50-YEAR lows. 30 year fixed near 4.5%! As the economy gains momentum, which it eventually will, we will see rates increase much quicker than they have decreased.
3) Low-down payment options are still available. If you're a veteran you can still purchase with $0 down. Others programs allow from 3-3.5% down, and this money can be gifted from family, close friends, even employers. You also don't need perfect credit.
4) Closing cost credits are available from lenders and seller concessions are increasingly added to purchase contracts.
5) Builders and home owners are motivated and eager to sell. Both types of sellers are more than willing to offer all kinds of incentives (including concessions) to move a home. In a buyers market, you are the one who can control the transaction.
All of these things add up to one thing = home buyer advantage. Most clients find that it isn't as hard to qualify for a loan these days as they thought it would be. There are unprecedented real estate deals all over the place. But like everything else, these bargains won't last. Take advantage now, purchase smart, and you'll be rewarded in the future.
If you have any questions, please don't hesitate to contact me!
A beautiful home in the Chicago suburbs!
4 ECHO ROAD in HAWTHORN WOODS
Immaculate 3 bedroom 2 bath brick ranch on 1.25 acres. Expansive deck overlooks secluded wooded homesite. Meticulously maintained home offers hardwood floors in kitchen w/ separate eating area. Separate dining room. Master bedroom w/ walk in closet and bath. Many updates. Move right in!
For more info, contact Margie Cipperoni:
Coldwell Banker
792 E. Rand Rd.Arlington Heights, IL 60004
Office: 847-222-5000
Direct: 847-561-7969
Fax: 847-394-5890
margie.cipperoni@cbexchange.com
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