Light At The End Of The Tunnel?

Can we see the light at the end of the tunnel?  Maybe so!  According to numbers released by the U.S. Department of Commerce this week, nationwide housing starts turned upward for the first time in eight months this February, posting a 22.2% gain.  Building permits, which can be an indicator of future building activity, rose 3% overall, though the Northeast Region recorded an impressive 27.6% gain.  This would seem to suggest a glimmer of hope as we enter into the prime spring home buying season.

And what a time it is to be buying!  With all the negative news in the media, buying a new home can be a scary thought.  However, if you’re brave enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime!  If you’re qualified to buy a home now, if the purchase makes sense for your situation and you’re prepared to live in the home for at least five years, here are some reasons why you may be headed for a great deal:

Affordability is better than ever.   According to the National Association of Realtors’ housing affordability index, homes were more affordable in January 2009 than at any point since the group started the index in 1970.  The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.

Large inventory means great selection.   In most places, it is taking longer than usual to sell a home, which has created a large inventory of homes on the market.  This has resulted in reduced pricing and greater affordability.  Buyers can take advantage of this, but if you put off your purchase until the inventory shrinks substantially, you might not get as good a deal.  And be forewarned: It’s nearly impossible to time the exact bottom of the housing market, and even if you do there’s no guarantee that you’ll make a killing.

Mortgage rates are historically low.   It’s not just the price of the home that will affect affordability.  Mortgage terms will also affect your monthly payments.  Rates on popular 30-year fixed mortgages are at a level not seen in decades, currently around 5.09%.  And lenders are writing mortgages.  Yes, you’ll need good credit, an appropriate downpayment and be able to document your income in order to qualify for these great rates, but they’re out there!

So if you’re ready, so are we!  Give us a call to discuss how we may help you achieve your new home building goals and dreams.  Let there be light!!

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