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Tuesday, July 31, 2012

8 Reasons Why This is the Best Real Estate Market



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For months, years now most agents have been calling out loud and clear to all buyers saying that it has been a good market. In fact, we have been able to witness a lot of changes during the past several years – with ups and downs in home prices, interest rates, average DOM and inventory levels. Well, today the marketplace has begun an unprecedented shift for the better, amounting to it being a fantastic real estate environment for nearly everyone.

Here are eight reasons why we are currently in the best real estate market that we have seen in a long time and why you should consider getting involved:

1. Lowest interest rates in the history of our market. Right now, at the end of July 2012, we are seeing a typical interest rate of about 3.65% on a 30 year, fixed rate mortgage. Shorter terms can be even lower for qualified buyers.

2. Banks are eager to lend money. The stall we saw a couple years ago where banks were too cautious has now eased up, allowing most well qualified buyers the ease of a smooth financing process.

3. Very low home prices. This has been the case for a while now and it has helped buyers get great deals. But as buyers realize these interest rates may not stay low forever, the low prices work to help sellers too. Also when sellers do sell their properties they will oftentimes need to move elsewhere, making it a dollar for dollar trade up with the result of less taxes and lower borrowing costs.

4. Very low inventory. For the first time in a long time we are seeing inventory levels so low that it is encourage multiple offers and even bidding wars in some situations. Less competition is great for sellers and smoother transactions for buyers make everyone happy. Currently we are looking at a huge decline in active listings across the board.

5. More buyers have more buying power. For the first time, many potential homeowners are able to get into new homes with the availability of little to no down payment or other programs. With the expanded marketplace there is a lot more activity – a healthy indication of a recovering market.

6. Appraisers are being reasonable. Appraisers often hold the key to whether buyer and sellers can engage in a successful deal, especially since financing often depends on an accurate and acceptable appraisal. We are seeing more and more appraisers exercising less scrutiny in their process and working with agents plus lenders throughout their appraisal procedure.

7. The Presidential Election likely to strengthen the economy. One typical effect of a presidential election is the positive impact it has on the economy. This will of course generate further consumer confidence and of course increased real estate activity.

8. Rental rates are higher than ever before. Rents are probably as high as they have ever been, providing investors and secondary property purchases plenty of opportunity to embark on low cost purchases of property that will carry through rental income.

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If you know someone who could use this information right now,  do me a favor and forward this email, share the message with them. It helps get the word out there and I greatly appreciated it.
If I could ever do anything to help you with buying or selling or just making decisions on what you should do with you RE whether it be to hold & sit tight for a few years or just get the property sold now please give me a call and we can discuss your situation.