A Home Buyers
October 2014 still finds interest rates below 5%. Rates haven't been over 5% for months now. Yet, many buyers seem to be on the sidelines still.
Yes, the real estate market is improving. Just note the "decrease" is year over year price increases that came down to 6.8% from 8.1% a month earlier. A crisis!!! As Jim notes in the update below, the rate of growth is slowest since 2012.
Is that all bad?? Not at all!!!! No ones to get back to the hyper growth of the mid 2000s that caused so many short sales and foreclosures as the market "readjusted".
For three years now, the Fall Season is nearly as strong as the Spring Season for home sales, contracts closed and listings coming on to the market. I have seen listings sell and buyers contract on homes steadily since mid-September and it hasn't slowed down.
So why do I say buyers seem on the sideline? It is just a matter of numbers. With 5 years minimum of under performing home sales, this alone would account for pent up of demand for housing inventory.
Add the huge number of Millennials coming of age to purchase their first condo, townhome or single family home to the normal life change demand that occurs just because we are all human: job changes, military moves, marriages, kids and pet, divorces, losing a spouse, remarriage, retirement, moving to assisted living, want a ranch, prefer a condo, need that single family house....and on and on.
The result is massive pressure that has to burst eventually. And when will it burst? Again given human nature, after the bargain rates and present home values are history, the buyers will be out
in droves! The unknown will be if sellers are ahead of behind the buyers!!!
Some buyers may think it would take quite the courage to buy today;
What if house values decrease? Unlikely.
What if interest rates go down further? Totaly Unlikely
What if a better house comes out later? You have to look to know
if it isn't there now.
What if I can not get a loan? Gotta ask to find out!
Loans are hard to get. Only if the credit is bad
but banks are lending
Unsure of the process Why you call a Realtor!
We will explain!
Lease isn't up for 6 months Starting early is the
smartest move a 1st
time buyer can make
Frankly, buyers(and sellers) would be wise to make the move they want to make now.
Waiting for a better tomorrow is
THE BEST WAY TO MISS AN AWESOME TODAY!