Have You Seen the Light?
Posted by: Carleton Sheets in Real Estate Market, Real Estate, Property, Mortgage applications, Incentive, Housing Market, Economy, Confidence, Buyers market, Barack Obama on May 07, 2009.
I've been reading quite a few articles lately suggesting that some analysts are beginning to see a glimmer of light in the housing market.
For instance, a recent article in USA TODAY reported that well-kept homes in good neighborhoods are receiving multiple offers---even in states with high foreclosure rates. Why? It's a buyer's market right now and, as buyers become less "timid," they are taking advantage of the drop in home prices and lower interest rates to purchase a home. And investors are able to purchase many properties---preforeclosures and foreclosures---at greatly reduced prices.
Another sign of a market turnaround is an article I read in the Mortgage News Daily about how mortgage applications are rising (and not just applications for refinancing).
The Obama administration has tried to instill consumer confidence in the market and have offered incentives to help homebuyers purchase a home. And while I agree that improving consumer confidence is one of the first steps toward economic recovery, I think the banking industry continues to be a major roadblock to recovery as it "controls" the housing market with such stringent lending practices. Until traditional lenders relax their lending requirements, there are other nontraditional financing options to consider. Look for the article on "specialty lenders" coming your way soon in my Real Profit$® E-Newsletter.
If you're "sitting on the fence" about whether or not to purchase a home or an investment property, remember that this market won't last forever!
Have you taken advantage of this market yet?
