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Many anxious buyers have been sitting on the sidelines waiting for the time to finally make their move. Four factors are making that time now.
First , sellers are realizing that proper positioning allows buyers to see value. They understand they need to list at realistic prices to stand out from the high level of current home inventory reflected in the attached graphs.
The second factor is the historically low interest rates currently below 5% that allow a buyer to get more house with the same monthly income. The National Association of REALTORS® recently released a Housing Affordability Index which stated , “the relationship between home prices , mortgage interest rates and family income is the most favorable since tracking began in 1970.” Homes are now more affordable for buyers.
A third significant factor is the federal government’s 2009 tax credit of up to $8,000 for first-time homebuyers and buyers who have not owned a home in the last three years. To take advantage of this credit , the home purchased must be the buyer’s principal residence and the transaction must be completed before December 1, 2009. This is already spurring new buyers who have been waiting for the right time.
The fourth factor addresses current homeowners who need to move , but have to sell first. Even though their current home may have decreased in value ,so has the home they will buy. The value lost in the sale is essentially regained in their purchase in our current market.
We are experiencing one of the most favorable markets in years for buyers to take action. If you or someone you know would like to discuss these positive factors, please contact me.