Window of Opportunity

An article from Realtor Magazine Online last week again reminded me of what a great time this is for people thinking about buying a home.

"Buyers, especially first-time buyers, with the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates, have a window of opportunity. These conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced."

Right now is a great time for buyers (I know, you've heard this one before!)...here's why. The winter season is usually the time of year with best values for buyers regardless of market conditions...fewer people are buying so sellers are more willing to negotiate and prices usually come down a bit. The flip side is that there are also usually fewer homes on the market so you don't have as many choices. Because of market conditions this year, not only are prices down but inventory is up so you also have the biggest selection in decades. The other surprise is interest rates...they unexpectedly dropped below 6% again. In December they have been down to 5.75% for a 30-year fixed mortgage (no interest rate increases for the life of the loan).

Interest rates historically low...inventory historically high...prices low...all mean the stars are aligned in favor of buyers right now. (And with our long winter nights we have even more time to see the stars!)

What makes this a real window of opportunity is the fact that prices are not expected to drop any more come spring...they're expected to rise again, albeit modestly. Interest rates are also expect to rise in 2007, forecast to reach 6.7% by year end...that's still historically pretty low, but also about 1% higher than it is right now.

All that said, if you're planning to buy this is a good time. But only you know if this is the right time for you...if it's not right time, it doesn't matter what the market conditions are. A doctor recently told me that our gut is our second brain, with the same weight of neurons as our brain. It's smarter than we realize...listen to it! If your gut tells you this is a good time for you to be buying, the current market conditions are opening a window to help you fulfill your dreams.

Read the whole article quoted above...
http://www.realtor.org/RMODaily.nsf/pages/News2006121101?OpenDocument