As we begin the New Year 2009, we find ourselves in a fantastic real estate buyer's market! Since late 2006, the real estate market in the United States has been experiencing a downturn due to external economic forces and the negative effects of an untempered real estate boom. As such, 2009 has positioned the market to be very favorable to the real estate buyer. If you have been giving any consideration to buying a home, now is the time to do it...
One reason we find ourselves in a buyer's market is the fact lenders have significantly tightened underwriting requirements. In 2006, loan products were available that allowed for 100% financing with marginal credit scores. This contributed to the real estate boom, but also contributed to our current market challenges. By tightening the underwriting requirements lenders reduced the pool of potential buyers significantly, causing sellers to have trouble selling their homes. This brought down prices and made sellers much more open to concessions during negotiations, benefiting the buyer.
Another reason we find ourselves in a buyer's market is tied to the first. As time went forward from 2006 the number of homes available for sale on the market continued to increase. As the number of homes available for sale increased against a decreasing pool of potential buyers, further downward pressure was placed on pricing. In addition, this has forced sellers to make updates and other improvements to their homes to make them more viable in the current market, again benefiting the buyer.
A final reason we find ourselves in such a terrific buyer's market is because mortgage interest rates have been significantly reduced in an effort to stimulate the real estate market. In addition, lenders are offering incentives like greatly reduced closing costs to drive new clients to their doors.
Given these factors you can see why the current real estate market has turned out to greatly favor the buyer. Now is the time to buy if you have been giving it any consideration, and if you are not ready to buy now, it is time to take the steps necessary to get prepared. This buyer's market will persist in many areas for years to come, but in certain areas it will begin to turn around this year. Do not miss an opportunity of a lifetime to purchase a home with great terms at a great rate!
Source :- Ezine Articles
1 comments:
Year 2009 was very good year for investment purpose. Mortgage rate and prices of houses were affordable for everyone.
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