Is it a good time to buy?
Yes, we can confirm that the Great Recession of the 21st century is officially over. The recovery is taking longer than anticipated but there are signs of improvement; supply is down and demand is up. But don’t fret just yet, there’s still good news for buyers. Lower prices combined with lower borrowing costs translate into the best buying opportunity in recent memory. Based on our sales, home values in our area have been depressed since the financial crisis of 2008, but we have begun to notice a slight uptick in prices in the first 6 months of 2012 as confirmed in this Wall Street Journal article. Additionally, we have encountered several occasions where we have experienced multiple offer situations on some of our properties. Yes, there are still good values out there but you need to know when to recognize them and act accordingly. It is a given; markets will always fluctuate but quality is never at a discount to the market. All real estate is local, and we have fared much better than other parts of the country (which only emphasizes just how desirable, and what a great investment, the Hudson Valley remains). If you’ve been contemplating a purchase, now would be a great time for you to speak with us. Don’t miss out on the benefits of buying in this “challenging” real estate market.
- More room to negotiate.
Prices are lower, and houses are staying on the market longer than in recent years. Buyers definitely have more say at the bargaining table.
- More selection.
Because of the downturn, there is definitely a larger selection of houses available than in recent years. Buyers should educate themselves so they know a good deal, or a gem, when they see it.
- More time to react.
It wasn’t that long ago when you had to move with lightning speed to seal the deal. With today’s larger inventory, buyers should have a bit more time to contemplate their purchase. That’s not to say that a well-priced or a “triple location” property won’t still move quickly, even in this environment.
- Interest rates are at historic lows.
Yes, credit remains tight right now. But for qualified buyers, mortgage rates are lower than they were even 1 or 2 years ago. Improve your bargaining position by getting pre-approved by your lender if necessary.
- A home is still a good investment.
According to the National Association of Realtors, the national median home price has historically risen every year. In a balanced market, home values rise at the rate of inflation plus 1.5 percentage points. That’s nothing to say of the tax benefits that come with owning your own home. (And unlike some stock purchases, a property can never lose all of its value overnight.)
- It’s always a good time to live the life you want.