Friday, July 26, 2013

Thoughts on the Real Estate Market

Its the middle of the summer and most of us are thinking about going to the beach or taking a fun trip during our summer break. As a Realtor,my thoughts are taking me in the same direction,but summer time is one of the peak work periods for me. Home buyers have more free time during the summer months to look at homes to buy and do the work needed to purchase a property and make the big move into their home. We are in an interesting time to purchase a home. Home prices are off their highs that we saw 5-6 years ago but appear to be rising. While interest rates for a 30 year fixed mortage have risen to a little bit over 4%, they are well below the 8% rate that I saw 21 years ago at the start of my real estate career. The number of distressed properties(Short sales and foreclosed) have decreased and fewer people are selling their homes for a loss.The number of homes for sale seem to be higher than we saw during the spring time and buyers do not have the rushed feeling we saw a few months ago. It is my feeling that we have seen the bottom of the real estate market but still have a ways to go before home prices are no longer affordable. In the near future,its unlikely that we will see a quick rise in home prices that were seen in the 2000-2008 time frame. However,if people are looking to live in their homes long term, they will see a modest rise in their home values. While there are many indications that its a good time to purchase a home,the timing of purchasing a home is an individual matter. Home ownership is a major commitment. Having the finances needed to purchase and maintain the home are key to the process. Its also important to learn about the home buying process by talking to a Realtor and/or taking a first time home class.Unlike renting an apartment,home ownership needs to be viewed as a long term commitment. Home ownership incorporates a major financial commitment with a place to live. While the indicators are pointing to the buy sign, the buy side is clearly dictated to individual timing