We most likely have a little ways to go before Real Estate markets throughout the country finally hit bottom. After all there is still a significant amount of foreclosure inventory that needs to be sold, as well as new foreclosure inventory that has not yet hit the market.
According to Rick Sharga, Vice President for marketing at Realty Trac, a foreclosure listing firm, there were around 700,000 foreclosed homes nationwide at the end of last year that had not been listed yet. This "shadow inventory" of unsold homes certainly could drag the correction out longer.
This period in time however, could eventually looked back at as one of the best in our history to buy a home.
Think about it for a minute when have we ever had the kind of conditions that we presently have now? A large consolidation in housing prices, interest rates teetering on near record lows, 1st time home buyer tax credits, and on and on.
In some respects the housing market is like the stock market. Everyone would love to find the exact bottom and then buy.
If your time line for home ownership does not include a possible transfer over the next couple of years what are you waiting for? You should be jumping at this chance. The cost of home ownership has never been more affordable!
In many areas throughout the country you can own your own home for less than what a similar home would rent for. This is BEFORE you even take into account the tax savings involved with having a home.
While stocks can often times shoot up in a span of a few weeks and home prices do not, don't be foolish enough to assume that interest rates could not jump in a very short period of time. As soon as inflation starts to rear it's ugly head there will be extreme upside pressure on interest rates.
If you are a 1st time home buyer or want to move up in the market to a larger home there has never been a better opportunity. For those that want to think about moving up in the market and have not made the move because of lost equity - STOP WORRYING ABOUT IT! You will make this up on the purchase, as the home you will be buying will most likely have dropped by a larger percentage. For a detailed explanation of this see selling your home in a buyers market.
Interest rates are the X factor right now! The cost of borrowing money is super low. How long this will last is anybodys guess! I truly believe we are nearing the bottom of the Real Estate correction. Rates will not stay this low forever. Don't kick yourself by saying I coulda, woulda, shoulda after the rates jump!
I will leave you something to think about with this 30 second video:
About the Author: The above Real Estate information on the housing market coming back was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at firstname.lastname@example.org or by phone at 508-435-5356.
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Building lasting relationships by helping people move in and out of Metrowest Massachusetts for the last 23 years.
Bill Gassett is a thirty-two year veteran to the real estate industry. He enjoys providing helpful information to buyers, sellers and fellow real estate agents to make sound decisions. His work has been featured on RIS Media, National Association of Realtors, Inman News, Placester, RESAAS, Credit Sesame and others.