How’s the market? I hear that question every day! The answer (as is the case for most real estate questions) is It depends.”
If you’ve been looking for a home under $250,000, you know that there is very little to choose from, especially if you don’t want to consider a short sale and the uncertainty and long wait that goes along with it. This means that non-short sale homes in that price range are a rare commodity – and can command a premium price. Buyers, anxious to buy now and get their $8,000 tax credit and to take advantage of record low interest rates, are competing for these properties and they are routinely selling for over the listing price! Even short sale properties in this price range are going fast.
Three’s a brisk market for homes in the $250K-$350K price range as well, although its not as frenzied. Above $350, it’s a little slower, and if you get over $700K, buyers can negotiate some great deals.
What will happen when the April 30th deadline for the tax credit passes? The “feeding frenzy” will likely calm down, but as long as mortgage rates stay relatively low, your home-buying dollar will get you a lot of home for the money. Also, today’s mortage borrowers will be re-paying their mortgage in “cheaper” dollars if and when inflation takes hold. (Given the massive deficits run by the government, inflation is a very likely outcome!)
Once rates begin to creep up due to market & inflation pressures, homebuyers will be forced into less and less expensive homes.
Long story short – this summer is the time to buy!
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