The Time Is Now!
This is the type of Market that two years from now everybody will say, “I wish I had bought then.” All the factors are lining up for the next six to twelve months to be that year. Let’s look at those factors.
Financing - Interest rates are dropping! From mid 2003 through mid 2005 rates hovered just above and below the 6% threshold, never dropping below more than a few months. Before that, rates had not been below 6% for some forty years.The most likely conclusion is that mortgage loan rates will not stay below 6% for too long.
Mortgage money is available! The days of Buyers needing to prove employment, have some cash on hand and credit worthiness have returned! Violating those principles contributed enormously to our current global financial crisis.
Inventory, Foreclosures and Pricing are at Rock Bottom! Inventory is slowly being absorbed. Around the Country Foreclosure properties are being purchased at a faster rate by first time home buyers and Investors! This activity itself will create its own momentum. As more Buyers and investors choose to buy now the demand they create will stabilize and lead to market appreciation.
Buyers who buy over the next year are likely to be buying at the bottom of the market and will benefit from excellent appreciation!
As more and more Buyers realize that it is a good time to buy, demand begins to absorb and exceed supply. In turn, the market will slowly return to a seller's market and mortgage rates will begin to rise once again!
Inflation is the X FACTOR -- Inflation is an upward movement in the average level of prices. Its opposite is deflation, a downward movement in the average level of prices. The boundary between inflation and deflation is price stability.
Inflation is caused by a combination of four factors:
- The supply of money goes up.
- The supply of other goods goes down.
- Demand for money goes down.
- Demand for other goods goes up.
Another group that I am encouraging to buy now is investors of residential rental property. Investors still have to do their investment analysis. They still have to carefully look at occupancy and vacancy rates. In other words, investors have to make smart, calculated buying decisions. As always has been the case for investors
United Country 1st Choice Realty Group is your foreclosure and HUD Specialists! We have helped many home buyers and investors realize their dreams! Don't be the one saying “I wish I had bought then.”
Call us today at 770-775-1206 to get preapproved with one of our preferred lenders and let us help you to Get in the Game!