Now is a Good Time to Buy-If you Buy Now!

I heard this on the radio today and was struck by how true it is! It is a good time to buy but only if you buy now! So many home buyers are waiting for the other shoe to drop but while they wait many home buyers are out purchasing homes. Inventory is going down and in some neighborhoods has dwindled significantly. Not all neighborhoods have short sales and bank owned properties. Many do, but not all. As sellers wait this out there will be less inventory to chose from. If you want to buy a home and take advantage of the low prices as well as the increased loan limits-part of the economic stimulus and scheduled to disappear at the end of the year-you need to get moving. Spring and Summer are the biggest inventory months and the best time to move your family to your new home!

Market Update!

Recent market reports are starting to indicate improved home sales in The OC. Demand has slowly improved as value has crept back into the market. The conditions are perfect to purchase now and into the future with motivated sellers, surplus inventory of homes, low interest rates, and new loan programs available now. Bank owned properties and foreclosure are not going away anytime soon. In real estate the rule is always location, location, location. Do not let price be your only determining factor in choosing a home to purchase. Price is important, but current favorable interest rates may not stay around as long as you think. The Federal Reserve has been drastically reducing rates but prior to the financial meltdown, they were methodically raising rates to counter the threat of inflation. The threat of inflation is not gone! With all the actions the Federal Reserve has had to take to jump start our economy and financial markets, inflation has just taken a back seat for now. It is still the primary focus of this regulatory group! Keep in mind also that this group has no direct control over mortgage rates so the low rates may not be reflected in your mortgage. Do not get comfortable with today’s interest rates, they WILL eventually increase. At some time the Federal Reserve will reverse its course and push rates up higher. Just a note of interest, a 1% interest rate increase is the same as waiting for property values to decrease 10%. The payments are virtually identical. It is a good time to buy!