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Feature Article
Overview of the
market.
The real estate market is intertwined with the overall economy. If the
economy is strong the real estate market does well. What we have been
seeing over the last four years is a weak, struggling economy and a
depressed real estate market.
As I look at the current situation I see glimmers of hope for the
future. In past recessions the real estate market seemed to lead the
economy out of recession. In this recession, the opposite seems to be
happening. For two months in a row, private sector jobs have increased
significantly. The March numbers just came out on Friday and showed an
increase of 230,000 private sector jobs and an unemployment rate down to
8.8%. In February the gain was 240,000 jobs. This is the sort of news
that leads to confidence in the economy and with confidence comes
spending. With spending comes home purchasing.
An added benefit to increased jobs is that there will probably be fewer
foreclosures. Fewer foreclosures means home values can start to
stabilize and then begin to increase. Last month Baltimore saw a decline
in the number of foreclosures listed and a decline in the number of
foreclosures sold. In February there were 305 foreclosures listed and
that number dropped to 174 in March. In February there were 249
foreclosures sold and in March that number dropped to 143. This is good
news for Baltimore and the market in general.
I don’t think I can say that we are definitely at the bottom of the real
estate downturn, but if the economy continues the current trend, I can
see a brighter future. What does that mean for you, the first time
homebuyer? It means opportunity!! It’s not often that we can buy
something when it is priced at the bottom, with the possibility of
seeing nice profits or increased value in the future, but this may be
one of those rare times. Over the long term, real estate has always goes
up in value. More millionaires have been created with real estate
investing than in any other investment.
Spring and Summer are considered the strongest buying seasons and we are
at just the beginning of that season. Despite what the media is saying,
you have to remember that real estate is local and you can’t judge the
local market based on national averages. I’m out there every week
showing houses to clients and watching the local market and I see houses
selling. For the first time in a long time some of my clients are being
disappointed because someone else bought a house that they were
considering making an offer on. Houses are selling and if you see
something that works for you and is priced right, don’t hesitate, make
an offer and get it tied up before someone else does. Don’t make the
mistake of thinking that it’s a buyers market and I have plenty of time
to make a decision.
Right now the market is being dominated by first time homebuyers. This
is important because it allows the sellers of those homes to move up to
a more expensive house and keep the cycle moving. There are still
bargains out there and sellers are still willing to negotiate so don’t
miss this unique opportunity. It could take a couple of months to find
the right house and then another month to go through the whole financing
process and title work. If you run into any problems along the way, the
process could take longer. Get started as soon as you can and the first
step is meeting with a loan officer to find out for sure what you can
afford and to get the all-important Pre-approval letter. Without that
letter, sellers won’t consider your offer seriously.
Is This A Good Time To
Buy A House?
In these economic times most people are
shopping for the best deal they can find. They are looking for items
that they need or want when they go on sale. When Macy’s has a sale,
people show up to take advantage of high quality items that are offered
at a lower price. Not only can you buy clothes, computers, cameras, etc.
on sale, but you can now buy a house on sale. As you look for houses on
the various websites and on the multiple listing service, it probably
won’t have a big SALE sign on it, but it probably is on sale. I
am not saying FOR SALE. I am saying
ON SALE. They
usually won’t tell you that their house is on sale in so many words but
there are indicators if you know what to look for. With the downturn in
the economy, sellers are more motivated than ever to sell their houses.
In order to take advantage of these bargain deals, it is important to
have a good credit history. Paying your bills on time every month is the
easiest way to maintain good credit and get the best mortgage rate. If
you are unsure of what your credit looks like, you can get a report for
free once each year. Go to
www.annualcreditreport.com/cra/index. There is absolutely no charge
and no pressure to buy anything as a result of obtaining your credit
information.
Buying or selling in this market takes know-how. Let my 20+ years of
experience work for you. Let me show you how to find homes that are
“on
sale”.
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