What real estate professionals are saying about current market conditions. The successful brokers and sales associates are talking about the strengths that exist in the market - not the negative media hype. Below are positive angles that appeared recently in the media and underscore why it is a good time to buy real estate.
Recent Quotes about the Positive Signs in the Real Estate Market:
Mortgage Applications Rise 5.4 Percent for the Week Ending April 4
Mortgage application filings rose a seasonally adjusted 5.4 percent last week compared with the last week of March, the Mortgage Bankers Association reported on Wednesday. Both applications for mortgages to purchase homes and to refinance existing mortgages rose on a week-to-week basis, according to the Washington-based MBA's weekly survey.
"Mortgage Applications Rose 5.4% Last Week: MBA," by Amy Hoak, MarketWatch, April 9, 2008.
Mortgage Rates Drop in Weekly Survey
The benchmark 30-year fixed-rate mortgage dropped 16 basis points, to 5.96 percent, compared to last week, according to the Bankrate.com national survey of large lenders. Four weeks ago, the mortgage index was 6.39 percent.
"Mortgage Rates Decline a Bit," by Chris Kissell, Bankrate.com, April 10, 2008.
NAR: Upturn Expected in Second Half of 2008
Little change is expected in existing-home sales over the next few months, before improving notably during the second half of the year, according to the latest forecast by the National Association of Realtors.
Lawrence Yun, NAR chief economist, "Existing-Home Sales to Stabilize Before Upturn in Second Half of 2008," PR Newswire, April 8, 2008.
Senate Passes Bill to Help Housing Market
The U.S. Senate passed a bipartisan package of tax breaks and other steps designed to help businesses and homeowners weather the housing crisis. The plan combines large tax breaks for homebuilders and a $7,000 tax credit for people who buy foreclosed properties, as well as $4 billion in grants for communities to buy and fix up abandoned homes. "This is just the beginning of the process. This bill will go to the House. With the House and the White House we can come up with a piece of legislation fairly quickly."
Harry Reid, Senate Majority Leader (D-Nev.), "Senate OKs Bill to Boost Housing Market," by Andrew Taylor, Associated Press, April 11, 2008.
Young Buyers Find Opportunities in Current Market
Younger and first-time buyers with solid credit can suddenly afford homes. Although many people expect prices to fall further, some analysts think waiting could be a mistake. "Nobody knows where the bottom is. But if you wait much longer and prices go up, then the opportunity is lost."
Robert Aalberts, editor of the Real Estate Law Journal, "Young House Hunters See Opportunity in Crisis," by Adriana Loeff, The Ithaca Journal, April 4, 2008.
Good Agents Facilitate Fast Sales
Some properties seem to sell at lightning speed without sprouting for-sale signs and open-house balloons. Behind the scenes, the agents for both (buyer and seller) had been matchmaking, a practice that regularly goes on before houses turn up in the listings, and benefits parties who can act quickly. "All good agents, they have a network of agents not only in their office, but other agents. First, I am going to market it to my buyers, then my team and then other people in my office. Then, I am going down my short list."
Tom Atwood, Baltimore area agent, "The Hush-Hush House," by Andrea F. Siegel, Baltimore Sun, March 30, 2008.
Regional Update: Good News from Markets Around the Nation
Connecticut
Closed sales for single-family homes increased by 31.9 percent between February and last month, according to data from the Greater Hartford Association of Realtors. During the same period, the average days a home spent on the market decreased by 13.8 percent. "Since the beginning of this year pending home sales have been increasing from month to month, and the increase in closed sales last month appears to be a direct result of this forward looking indicator. It strongly suggests a path in the same positive direction that is expected for the national market."
Jeff Arakelian, president & CEO, Greater Hartford Association of Realtors, "Good News in CT Real Estate - Closed Home Sales Increase 31.9 Percent," RISMedia.com, April 8, 2008.
Gainesville, Fla.
The median home price and sales of existing homes have slipped lately, but some positive signs have recently emerged. More buyers are beginning to look at properties, and agents are starting to receive more offers. "We've largely been an insulated and stable market."
Craig McCall, president-elect of the Gainesville Alachua County Association of Realtors, "Close to Home: Housing Market Stable in Gainesville, Fla.," by Christine Dugas, USA Today, March 31, 2008.
Charleston, S.C. There are signs that buyers are budding. (Local) real estate agents said open houses are full and they are busier with showings than they have been in months. The Charleston Metro Area Chamber of Commerce expects almost 13,000 homes to change hands this year, a 6 percent increase from 2007. The chamber said activity is poised to pick up thanks to attractive mortgage rates, a relatively healthy local economy and demand from out-of-town buyers.
"Local Housing Market Shows Signs of Spring Thaw," by Kyle Stock, The Post & Courier, March 30, 2008.
Minnesota
Existing home sales in the Twin Cities jumped 6.6 percent in February over the previous month - and bumped up 2.9 percent nationally during the same period. Additionally, pending sales of existing homes in the 13-county metro area rose 20 percent from January to February, according to a local real estate association.
"Some Good News amid Real Estate Gloom," by Kendall Anderson, Finance & Commerce (subscription required), March 24, 2008.
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