I think the next 3 months will be the best time ever to purchase a home.
One agent felt that there would be another dip.
I asked this question the other night and an established owner of a plumbing company felt homes over $2 million in the US were a stable value - everything under $2 million was fully negotiable at this time.
Please state the geography so we have an appropriate reference in your reply.
I am not sure that anyone can make a blanket statement about this being the best time to buy. I am a licensed RE Broker in CA and get asked about buying or selling now all the time.
There are many variables to consider besides home prices and interest rates. Everyone needs to look at their long term goals for one thing. Sometimes staying in a current home makes better sense than buying a new one. Every situation is different.
I have a real estate company here in Houston TX. I specialized in selling bank foreclosures and REO listings for the past 7 years.
While we may have seen a brief increase in real estate activity (home tax credit) I personally do not think homes will fully recover for quite some time. My main reasoning is that the systems that were implemented by the administration to freeze foreclosures have technically just back logged the system.
Just this month, I received multiple foreclosures that have been vacant since October of 2009. They are just now putting it on the market. Many refer to this as shadow inventory. This "inventory" has always been here, lurking in the background. No one is talking about it.
Even as new foreclosure filings come on the market, they will now still have to liquidate the shadow inventory.
Most of the Loan Modifications are not working. I read that over 60% of the loan mods fail within 6 mos and are in foreclosure again.
I personally believe we have to focus on fixing the job markets before we see a significant recovery in housing.
Unfortunately, jobs have not been the focus of our administration. Or incentives to create jobs. Without work, people can not refinance, modify, or pay for a mortgage, much less get approved for new ones to purchase homes.
As you stated, some of the A+ loans and higher valued assets are not in jeopardy as much as the working middle class, yet. But if the economy continues to struggle and nothing is done for the business owners that create jobs, they will close their doors and consequently, the real estate market will begin to depreciate.
Just my .02 cents. From a buyers perspective. Great time to buy and hold real estate.
In New England if you are a Seller, you must position your home to sell by Thanksgiving. As a buyer, a great time to buy with low interest rates. Some markets have already bottomed out.
My bank just notified me that rates dropped here by 30 basis points! Wow!
The shadow inventory - great description - very interesting.
I wonder how much more shadow inventory is lurking? I want a stronger economy and people buying, moving and back to work!
These are all great answers. I'm in Michigan (Detroit area) where the market is one of the worst. The unemployment rate will have to stabilize before the real estate market has any chance of a real recovery. You can't buy a house without a job and the the same goes for a loan modification, If you aren't working it doesn't matter how low your payment goes.
According to a national report released by RealtyTrac, Florida edged out California for the second place in the national foreclosure rate, lagging behind only Nevada in the percentage of home mortgages in default. Florida’s November figure was 7.6 percent higher than November 2008 and 2.0 percent higher than October 2009. One out of every 165 homes was in some stage of foreclosure proceedings.
I don't believe we have hit the bottom yet. There are a lot of families in the upper middle class and above that have taken economic hits through concessions in wages and benefits, who have just now depleted what nesteggs they had stashed away. Many had two breadwinners, with one of them now without a job.
When we do hit bottom, I fear the consequences.
The homes of the above will soon be going into foreclosure also.
Our government doesn't work any different than the international monetary fund or the world bank. If you have ever noticed, these organizations will give loans to nations that are in financial trouble and haven't been able to pay their debts. How can you pay down debt by borrowing more?
Our government does the same thing. We are under a debt monetary system, where all money is created through the extension of credit from private commercial banks, or in the case of government borrowing, through other debt instruments such as bonds. We (must) continue to borrow or the system begins to collapse immediately. If we continue to borrow, we just go deeper into debt. Remember, there is no money created in this system to pay the interest on loans.
When government borrows, we pay for that borrowing in tax increases.
When corporate America borrows, it goes into the cost of living through higher prices for goods and services. When times are good, you pay a premium price for the things you purchase.
When times are bad, the things that you purchased at a premium, lose value and you take a big financial hit, or lose it.
It's simple. We cannot pay debt with debt, but are forced to live under the federal reserve fractional banking debt monetary system. Until congress passes laws that will get us earning our money, rather than borrowing it, we will never solve our financial problems.
Most people think that money is just out there. They have no clue as to it's origin. When I ask people how money is created, they tell me that when they work, they get it from the company they work for.
Then I ask: The company you work for didn't always have money, so where did they get it? They tell me that the company sells their product or service to people like you and me.
Then I say: Wait a minute. We didn't always have money, and the companies we work for didn't always have money, so where does it originate from?
Then when I explain to them that the money they receive from the company they work for, was the debt principle of loans that had been spent into circulation, and captured through commerce by their company, they cannot handle it! It is like destroying their belief system. They cannot accept that we all have been victims of the largest ponzi scheme in the history of man.
All of this indebtedness leads us to the economic situation we are in currently. All of this borrowing and servicing of the interest on this borrowing, the cost of living increases forced on us by corporate borrowing, have made it necessary over the years for the American workers to continually ask for raises.
This evergrowing cost of operating the government and businesses, has taken another toll, and that rears it's head in our inability to compete in the international marketplace.
Millions of our jobs have left the country in order for those businesses to avoid shutting down.
As we take cuts in wages and benefits, cuts in hours, or are replaced by people who will work for peanuts, everything we own is up for grabs, including our country. Wake up America!
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