Today’s Housing Market
The housing market in the U.S. is still in trouble. Sales are down and foreclosures remain too high. Developments that five years ago were slated to make huge profits have been halted; the weeds are growing where landscaping was supposed to be. It has become more difficult to get a mortgage.
This situation means that people who need to sell their homes are interested in doing anything they can in order to attract a buyer. It also means that prices have dropped, steeply in some markets, less so in others. Once the economy gets back in the swing, it is likely that anything bought now would gain in value. If you feel that your job situation is stable or that you have an excellent backup plan in case it isn’t, then this would be a great time to buy a house, either as a primary residence or as an investment.
A shaky economy calls for wisdom in financial decision-making. In the case of buying a house, this means foregoing the status house at the top end of what one can afford and instead making sure that the mortgage payments each month are not going to be a significant financial stress. Still, in this economy, you are likely to find very nice houses well within your price range.
Since banks and other lenders got burned on their profligate lending practices over the past year or so, it has become more challenging to get a mortgage loan. If you decide to go for a house that is well within your financial reach, you are more likely to get a loan. Additionally, because some sellers simply must get rid of their houses due to job change or other personal reasons, sellers have become more likely to finance your buying their houses. If you decide to go with this option, be sure you get a real estate lawyer to look at the agreement to make sure it is legitimate; along with sellers desperate to get buyers there are also frauds looking to take advantage of would-be buyers.
Additionally, if you have not owned a home in more than three years, there is government funding for the purchase of a home, to the tune of an $8000 tax credit.
While sales are still flat in some areas, they are beginning to pick up in others. The economy is still struggling and yet it is showing signs of perking up across many sectors. This means that if you are in the position of buying a house right now, you may end up with a purchase that will bring significant profit in the long run.
Related posts: