"Once in a Lifetime Opportunity"
March 24, 2011
"Once in a lifetime opportunity". I heard that expression yesterday while listening to an interview of an economist who was answering questions about the state of the current housing market. There is a lot of news about housing sales being down both in volume and price. Yesterday the news concerned sales of new construction. I personally think it should be of no surprise to anyone that the volume of sales of newly constructed homes has decreased. Just look around our Inland Empire Region. Do you see new home developments being constructed? If their are few homes being built, there will be few newly constructed homes being sold. Until construction of residential real estate begins again, the numbers for sales will continue to be low.
Back to the "once in a lifetime opportunity." The economist pointed out that the affordability index is teetering around 70%. That translates to 70% of eligible potential home buyers could qualify for the median priced. home. Additional favorable opportunities are the following:
1) Interest rates are still hovering slightly under 5% for a 30 year fixed mortgage.
2)You can still obtain an FHA guaranteed mortgage with only 3.5% down. (The winds of change suggest that this low down payment may go away before the end of the year.
3)Home prices are as low as they have been in the past decade and while no one can say for sure that the bottoming out of prices has occurred, prices are remarkable.
The convergence of all these components creates a buying opportunity. If one ever wanted to become a homeowner, it seems that there would hardly be a better time.
"Once in a lifetime opportunity". I heard that expression yesterday while listening to an interview of an economist who was answering questions about the state of the current housing market. There is a lot of news about housing sales being down both in volume and price. Yesterday the news concerned sales of new construction. I personally think it should be of no surprise to anyone that the volume of sales of newly constructed homes has decreased. Just look around our Inland Empire Region. Do you see new home developments being constructed? If their are few homes being built, there will be few newly constructed homes being sold. Until construction of residential real estate begins again, the numbers for sales will continue to be low.
Back to the "once in a lifetime opportunity." The economist pointed out that the affordability index is teetering around 70%. That translates to 70% of eligible potential home buyers could qualify for the median priced. home. Additional favorable opportunities are the following:
1) Interest rates are still hovering slightly under 5% for a 30 year fixed mortgage.
2)You can still obtain an FHA guaranteed mortgage with only 3.5% down. (The winds of change suggest that this low down payment may go away before the end of the year.
3)Home prices are as low as they have been in the past decade and while no one can say for sure that the bottoming out of prices has occurred, prices are remarkable.
The convergence of all these components creates a buying opportunity. If one ever wanted to become a homeowner, it seems that there would hardly be a better time.
posted by shirley harry at 8:35 AM
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