Buying In This Market

I have a lot of friends who say something like this to me, "now's not a good time to buy or sell real estate. Doesn't everyone know the market is really bad right now?" Well this real estate market is different, I'll give you that. But here are reasons why it's a good time to buy and sell that you may want to consider.

Why you should buy right now: PRICES and RATES!

Lets look at prices first. Nationally, the real estate market began a downward price adjustment in mid 2007. That market phenomenon came about due to the introduction of a growing number of foreclosures and short sales, which reduced the value of residential real estate from 10-30 percent depending on the region.

While there are still some foreclosures left to hit the market, the banks which own these foreclosed properties, have now got this down to a science. They're not giving away phenomenal deals anymore. Yes you can probably get a foreclosure for 10-20 percent less than the same value home listed on the market, but you will most likely have to put that profit back into the property to bring it back up to a liveable condition. There may be exceptions to this and I love it when an investor client of mine gets that great deal. Great deals from banks are now the exception and not the rule. There are too many buyers and too many blind bids!

So prices are at an all time low and now is a great time to buy a house. Not only are foreclosures good deals, but the normal listings on the market which have to compete with the foreclosures that have been out there for a couple of years now, are also offered at attractive prices. But as with anything, you need to look closely at the property and make wise decisions based on a series of facts. (I'll be glad to help you with this by the way!)

Rates are great right now. Lenders are advertising mortage loans at 4% for a thirty year fixed. It may be more hassle and definately more difficult to get a mortgage, but once you do, you'll have one of the best rates in history. I think I've read where these are the best rates since sometime back in the 1950s.

So if you are going to get a morgage to buy your house, now is a great time to do it. The Federal Reserve is practically giving away money -- which is a scary thought when you think about it! That means the dollar is cheap. This certainly can't continue for very much longer. (I've heard rates will go up after the first of the year if not before.)

Next post ... why it's a good time to sell. (Yes you heard right!)