Why is now a smart time to buy?

• I.I.I.P.  Inventory, interest rates, incentives and price.  In most markets around the nation, home inventory has increased giving buyers a greater choice.  At the same time, mortgage rates remain at near historic lows and home prices have decreased the last two years which is the first time that has ever happened since World War II.  Prices dropped about 2% in 2007, 9.3% in 2008 and 12.4% in 2009 according to the National Association of Realtors.  This has made home affordability the best since at least 1973 and maybe ever.  Add in the first-time homebuyer incentive to make it a smart time to buy.
• Consumers also have to gain confidence in housing.  Reading headlines is not a great way to gain information.  Real estate professionals need to educate the local community on such issues as inventory, appreciation and time on market and remind everyone that all real estate is local.
• We have to remember that homes are selling when they are well-prepared for sale and priced right.  The reason is because people buy and sell homes for lifestyle reasons.  Births, marriages, new jobs, job transfers, retirement and others are all drivers.  Following the advice of a full-service professional, who knows market conditions and a home’s competition, is critical in readying a home for sale.
• What has happened is that sellers have become much more realistic in setting the price and continue to understand that a home is home, not a winning lottery ticket.
• We also have to see a reduction in foreclosed homes and short sales on the market.  These are a drag on prices and inventory. 

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  • We need to have Main Street American homeowners buying from Main Street American homeowners.  While getting first-time homebuyers back into the market is critical and the extension of the tax credit helps, the nation’s economy also needs the move up buyer back in the market.  That is why the tax credit expansion is so important.