The real estate market is still not fully recovered but there are positive signs that we are at the bottom and maybe moving up. The prices of homes fell so much that it is tempting many renters to buy a home instead of renting. The monthly payments might be the same especially when you include your tax savings. Rates are still affordable and there are many homes to choose from. The only problem we have is that many of these homes have gone down so far in price that it is creating a buying frenzy. Many of the homes that are less then $400k are getting multiple offers. Be patient because there is talk that more REO’s and Short Sales are going to hit the market next year.
Buyers today have a great selection of homes that are for sale.
Some areas are flooded with Foreclosures, REOs and Short Sales, which increases the number of homes for sale and the prices are usually lower, therefore making the price range lower. As a result, many of the REOs are getting more then 1 offer. This is a sign that prices are at a point where it could go back up. Buyers are making offers above the asking price therefore stopping the downward spiral of the price range.
It is still a good time to buy because interest rates are still low and you have choices. Also, for a limited time, both the federal government and the state of California are providing buyers with a tax credit for purchasing a home. This could be as much as $18,000 combined. If you’re thinking about buying a home, don’t wait for the increase in interest rates. It may force you out of the market.
Here is a news cast about the market place, a survey from the California Association of Realtors and some information about the tax credits. Just copy and paste it in your browser.
http://www.car.org/newsstand/newsreleases/jan09salesandprice/
http://cbs5.com/video/?id=47401@kpix.dayport.com
http://www.car.org/legal/2009-qa/homebuyer-tax-credit-chart/
