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Wednesday, June 25, 2008

Get in the game...

From a recent real estate news feed that I get come these tid-bits about why it’s a good time to buy -

While pundits have been calling for a bottom for months, the fundamentals suggest we're close, because the bad news taken as a whole is worse than it seems.

Wholesale and retail prices are up on oil speculation. Seventy percent of futures traders in oil are speculators. What goes up will come down again.

Home prices have receded in 260 markets, but only 4.6 percent from April 07 to April 08, says the Office of Federal Housing Enterprise Oversight, which oversees Fannie Mae and Freddie Mac. That's a far cry from Case-Shiller's findings for 20 U.S. metros.

During Black Monday of 1987, the Dow lost 22 percent of its value, so we have a ways to go to match that.

During the recession of the early 90s, unemployment was two percent higher than it is now, so this housing slump is not job-driven, but speculation-driven.

Buyers who have good credit have access to the widest selection in homes since the '90s. They have interest rates three points below the average.

According to the housing reports, housing is still declining, but the pace of declines is slowing, which suggest we're near the bottom.

And here's the good news. Harvard's Joint Center For Housing Studies says that although recessions exacerbate housing downturns, there's usually a quick recovery.

It’s hard to tell sometimes from these stories whether the authors are reporting things as they are, or wishing for how they’d like things to be. I suppose the numbers that they report from various sources are accurate; it’s their interpretation of what those numbers mean that can reach different conclusions. Locally, I’ve been reporting that things have picked up in the market (even if the pick-up has somehow missed the Village of Milford).

I do believe that it’s a good time to buy. There are some great deals out in the market right now – on both foreclosures and regular sales. There is a very good inventory to choose from; and, even though money is tighter than in the past, if you have good credit the rates are still attractive. The new, higher FHA limits have put much of the market within reach with an FHA loan, which only requires a 3% down payment and has lower rates than conventional loans.

Now is also the time to get a new home and be into it and settled, before the new school year starts. So give me a call and let’s get out there and start looking! You've got to get into the game, if you hope to win.

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