Potential Buyers...What are you waiting for?
For all the undecided potential buyers, my question is, what are you waiting for?
I agree that the articles written about foreclosures, short sales, and under water mortgages is the reality portrayed by the news media. In contrast, investors exposed to the same data process the information differently, it is a season for acquiring real estate. Currently the market is still full of opportunities with low prices, low borrowing rates, and very little competition among buyers.
Investors and confident buyers understand it is time to make a purchase.
Existing home sales edge higher in October
@CNNMoney November 21, 2011: 10:56 AM ET
Homebuyers scooped up more previously owned homes in October, slowly putting a dent in the huge inventory on the market, an industry report showed Monday. Sales of existing homes rose 1.4% last month to an annual rate of 4.97 million homes, up from a downwardly revised 4.90 million homes in September, the National Association of Realtors reported Monday. That was higher than expected. Economists polled by Briefing.com had expected an annual rate of 4.85 million homes in October.
Compared to a year ago, the rate of existing home sales has jumped 13.5%, from 4.38 million units. Continued gains in home sales have lightened up the inventory of homes on the market, the report showed.
Total housing inventory at the end of October slipped 2.2% to 3.33 million existing homes for sale, representing an 8-month supply at the current sales pace. That's down from an 8.3-month supply in September, and continues an ongoing downward trend since hitting a record high of 4.58 million in July 2008. Read more>
Congress Restores FHA Loan Limits to NAR-Backed Levels
Daily Real Estate News Friday, November 18, 2011
The U.S. House and Senate yesterday restored FHA loan limits to the level they were at before they were allowed to expire at the end of September. As a result, the limits will rise to 125 percent of the area median home price from 115 percent, up to a maximum $729,750 from $625,500. NAR estimates that several hundred counties where FHA loan limits fell at the end of September will now rise back up to the previous level. Read more>
U.S. Will Remain a Nation of Homeowners
ANAHEIM (November 12, 2011) – The U.S. will not become a nation of renters; there are just too many benefits, both financial and otherwise, to own versus rent. That’s according to the combined findings of several recent studies presented during the “Buyer or Renter Nation?” session today at the 2011 Realtors® Conference & Expo.
An analysis over a 31-year period across 23 metropolitan areas compared the ownership benefits in terms of appreciation and interest deductibility and the costs homeowners incur with downpayment, taxes, insurance and maintenance. When it was assumed that renters reinvested any savings in rent (versus a higher monthly mortgage payment), maintenance and downpayment, renters had a greater portfolio than buyers in 91 percent of the areas examined. However, when the model allowed renters to spend any savings rather than reinvest those savings, 84 percent of buyers came out ahead.
“We knew that homeowners, on average, accumulate more wealth than renters,” said Ken Johnson, editor, Journal of Housing Research at Florida International University. Johnson spoke at the session and conducted the analysis with Eli Beracha. “These findings indicate that homeownership is a self-imposed savings plan. Not everyone should own a home, but from a financial perspective, people who are planning to stay in a property over the long term can benefit from buying.”
Rick Reed, G.R.I., CDPE- Certified Distressed Property Expert
Assoc. Broker/Owner "The Congressional Team" RE/MAX
Licensed in MD & Wash DC
8937 Shady Grove Court
Gaithersburg, MD 20877
Office: 240-403-0399 X306
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