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”.