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Nearly
everyone knows that after our housing market crashed in 2007 things got crazy
in the real estate industry. Values slumped, people were forced into
foreclosure and short sales and the market pretty much slowed down almost to a
standstill. Well today, things are finally coming back up – in fact, they ARE
up. With phenomenal market conditions, including fabulous interest rates, lower
inventory levels, increased demand and more lenient lending practices, there could not be a better time to buy a
house.
Interest
Rates Continue at Record Setting, All Time Lows
Right
now in our marketplace and across the country, people are able to lock in
interest rates as low as in the mid 3% range for 30-year fixed rate loans. When
you consider other factors such as credit condition and debt-to-income ratios,
some borrowers are even able to lock in lower rates. Go to a 15-year fixed rate
loan and you can expect even lower interest rates.
Inventory
Levels Are Dwindling
As more
and more buyers are snatching up properties, fewer homes are available on the
market. Going back to basic supply and demand principles, this ends up driving
up prices while demand continues to rise.
Our changing market continues to shape prices with an overall upward
trend looking at year over year prices from 2011 to 2012.
Buyers
Have Lots of Buying Power
The low
interest rates in addition to decreasing inventory has pushed up buyers’ buying
power significantly. They are able to afford a lot more house for a lot less.
This is prompting a lot of first time buyers plus homeowners that had
previously been on the fence about purchasing a property, to get back in the
market.
Lenders
Are Back in the Game
For a
while there in light of all the scandals going on in the mortgage
industry, there was a lot of uncertainty in the lending market. Now, however,
banks are loosening up more, they have money to lend and they are willing to
lend it. In fact, lending practices have eased up enough that buyers with
less-than-perfect credit are now able to borrow again as are previous
homeowners that had gone through a short sale.
~
As
conditions continue to improve and buyers eagerly lock in their buying power,
we expect to see increasing multiple offer situations (which is ideal for
sellers but not so much for buyers). Right now is a great time to buy,
considering all these factors. So if you have been thinking about buying a new
home and want to take advantage of the fantastic market conditions we are
experiencing right now – contact me today. I would be happy to help!
Also, check out one of our latest listings at 2015 W. Davis in Phoenix!
Click Here for the Home Tour! >>
Also, check out one of our latest listings at 2015 W. Davis in Phoenix!
Click Here for the Home Tour! >>
