The economy is slowly rebounding. It hasn't improved as quickly or as vigorously as we would like, but each month, there are indicators that both the economy, and consumer confidence, are improving.
I read an article today by Dan Steward, Get in while the Getting’s Good – Why Buyers and Sellers Should Take Advantage of Today’s Real Estate Market, that contends that conditions might be right for consumers who have been waiting for the right time to buy.
For buyers in higher priced markets, the phasing out of the Jumbo mortgage backing by Freddie Mae and Fannie Mac, will ultimately mean buying many homes will be more expensive as the rates to borrow this money increase. Combine the current government backed Jumbo loans, with prices that are lower in most markets, and this might make right now the most affordable time to buy.
In my market, Northern Virginia outside of Washington D.C., many homes are priced such that the Jumbo mortgage limit of $729,750 is used to determine both price and down payment for purchasers. Very few people want to borrow more than the jumbo limit and pay higher interest rates.
I have seen homes selling for significantly less than what they are worth, based on comparables. Right now, motivated sellers are accepting prices for their homes that they might not otherwise accept. This provides a great opportunity for buyers. A motivated seller will right now seriously consider an offer that might not meet their objectives, but which will allow them to sell and move on with their lives.
For buyers, the key is making an offer. Phone calls and email inquiries are fine, but the only conversation that matters between a buyer and a seller is the actual Contract to Purchase Real Estate. If you are a buyer, and in a position to purchase a home, what are you waiting for? More expensive money? Prices to creep back up?
This might be the perfect time to jump off the fence and write a contract for your new home!
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