Today I am going to talk about the current market conditions as related to real estate. Currently mortgage rates are below 5% again for 30 fixed rate mortgates. Home prices are still very low, but statistics have shown that very slight increases in home prices have been occuring in some real estate markets. Overall sales are also up from this time last year. These are signs that the housing market is headed in the right direction. However, although we are seeing increases in sales and very slight increases in home prices, the market will most likely be slow to recover. This is due to the fact that we still have a lot of properties that are going to going into foreclosure. This will make it hard for homeprices to go up. Also, with unemployment rate being so high, the amount of people that are able to buy homes will not be as high as it has been in the past.
If you are in the market to buy a home though, I would suggest making a move, especially if you are a first time homebuyer. Interest rates being below 5% is an incredible opportunity that could save you a lot of money over the course of paying off a home loan. It is likely that interest rates will go up to around 7% in the near future in order to curb inflation. This 2% increase could mean you are paying a couple hundred dollars a month extra on your mortgage payment. Also, if you are a first time homebuyer, if you close on a home by November 30th, you might be eligible to receive up to an $8000 tax credit from the government next year when you file your taxes. A tax credit is subtracted directly from your tax bill, so if you owe the government $2000, you will get back $6000 if you qualify for the $8000 tax credit. Finally, with home prices being at 2002-2003 levels now, the affordability of homes is great. If you have been sitting on the fence, get off and buy a home.
Please feel free to contact me if you all have any questions pertaining to real estate, and I would be glad to help answer your questions.