The Real Estate Market is better than you believe! In 2011, the buzz about the housing market was that it is extremely slow, sellers can’t sell, buyers won’t purchase, and banks won’t lend mortgage money. The reality is... sellers are selling, buyers are buying and banks are providing mortgages. With consumer price inflation rising, consumers are looking to lock-in steady payments by taking long-term fixed –rate mortgages, however obtaining a mortgage has gotten a bit more stringent. Some qualified buyers have been denied the opportunity to buy in today’s market due to the banks overly restrictive mortgage underwriting situation. Banks require excellent credit scores and a down payment toward the purchase price. So if you have what the banks require then go for it, as there is no better time to purchase a home with such historic low mortgage rates making your purchasing power even greater.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 3.99 percent in November from 4.07 percent in October; the rate was 4.30 percent in November 2010; records date back to 1971. As of January 02, 2012, a 30 year fixed rate was even lower at 3.625%, and a 15 year fixed rate was 3.00%.
According to the National Association of Realtors in their existing Homes Sales Report, there is an average of 12,109 homes selling in the
Lawrence Yun, NAR chief economist, said more people are taking advantage of the buyer’s market. “Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing,” he said. “We’ve seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today’s market for buyers with long-term plans.”
So is it time to buy a home? You bet it is. Don’t look back and say “I should have.”
Cynthia Lippolis, Principal Broker
Prudential River Towns Real Estate
914-271-3300
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www.RiverTownsRealty.com
