· The National Association of Realtors® has reported that Existing Home Sales for February 2009 were UP! This was a pleasant surprise. In addition, New Home Sales and New Home Starts for February were also UP!! This is important because many of the areas that experienced the largest decline are leading the increase being seen now.
· In addition to the news above, Consumer Spending rose in February. This is the second consecutive monthly rise in spending.
· Congress has extended the Tax benefit to 1st Time Homebuyers from $7500 to $8000 and now the money does not need to be repaid.
· Mortgage Rates are hovering at near the lowest rates since records have been kept.
Home prices are still down from their peak in 2005
· This is a very opportune time to buy. Normally ONLY one or the other of Rates or Prices are down.
· RARELY ARE BOTH DOWN AT THE SAME TIME!
· Finally, remember the fact that monthly Real Estate news reports always report on previous month's activity. This means that by the time the data is released, the data is over a month old. Don't try to "catch the bottom" of the market. You would be extremely lucky to manage that. The best time to buy a home is when you want it. Start now because by the time you are in a position to make that transaction, the market may have already picked up. Remember, this is not the stock market. Stock prices fluctuate on a daily basis but you need to pay close attention in the short term. For home prices, the short term is not important as long as you are not investing in the home to flip it in a very short time. For a typical homebuyer, the home will be held for seven to ten years. For that period home ownership has consistently performed well for the owners. While we still have a way to go to be back in a positive market flow, it is great to see progress. Keep the local market in mind when listening to the news. Saying the national Real Estate market is doing one thing or another is about like saying the national temperature is 70 degrees! It is somewhere. But somewhere it is 90 and somewhere it is 50. Please contact me for the latest in local information.
2. I don't want to sell now because I won't get as much for my home.
· When the inventory of unsold homes is high, prices will come down. It's the economic law of supply and demand. This may not be a bad thing. If you are not getting as high a price for your home you will most likely not pay as much for the new home either. Lets' look at this example: Your home is worth $200K. If you have to reduce your sell price by 5% you will be giving up $10K. If you are buying a home that is $400K and the seller is reducing his price by 5% you are gaining $20K. On the other hand, if you wait until prices rise by 5%, you will get an additional $10K for your home but will be paying an extra $20K for the new one.
3. I want to wait to buy until the housing market is better.
· Too late. The reports you hear on the news are reports from the previous month. By the time the report comes out the market is already a month and a half beyond that point. You can wait if you wish but it's like trying to play the stock market and buy at the lowest price. That happens very rarely. The main concern is if you are buying a home to live in for a period of time or buying to flip it in a year. Buying for investment speculation always carries some degree of risk. Buying a home for the future that you plan to keep for at least five years is nearly always a good investment.
4. Mortgage rates are still low.
· Despite what you hear or may think, mortgage rates are quite good. They are hovering around 4 1/2 - 5 1/2%. (The interest rate on my first home was 14 1/2%.) There are a number of programs available to help for 1st time homebuyers. (This really is a great time to buy a home; lots of inventory and low prices.)
5. Why should you hire me as your Real Estate Agent?
· This is my pledge to you. "I will work as hard for you as YOU would work for you!" What does that mean? Simply this; you are proud of your work. If you are doing something for yourself, you want to do the best possible job. I will do that for you. I understand the buying and selling process. I will not push you to buy or sell any particular home. Your choice of home is your decision but I will assist you every step of the way
Bob Sawchuck 301-639-5941 bsawchuck@machomes.com
