Market Forecast
Real estate showing activity increased over the last 3-4 weeks but sadly is now showing signs of slowing. Last weekend I showed three different sets of buyers around the Albemarle area. Two were looking for second homes and one was looking for land to build a retirement home on.
First time homebuyers, who need to close by November 30th to benefit from the tax credit, are seeing the window of opportunity about to close. There is no word yet on whether or not the tax credit will be extended.
There is strong speculation that come the first months of 2010 listings will increase, including foreclosure and short sales, and mortgage interest rates will begin to edge upward as the government steps back from Fannie and Freddie.
What this means is that even if home price continue to drop (I wouldn't count on that) the affordability of a home will increase because of the rise in interest rates.
Historically, homes are more affordable now than perhaps at any other point in history. This due to the fact of low home prices and low interest rates. In my opinion, the housing market is at the bottom!!! It is at the bottom because both housing prices and interest rates are low causing home ownership to be at it's most affordable point. For if short sales and foreclosures increase but interest rates go up homes still will not be affordable as they are now. You must consider both factors when looking for the bottom.
If you are considering buying a home there is no doubt that now is the time. I believe one of the above factors, or inflation, will soon cause the affordability factor to begin going the other direction. Plus, the selection of available properties is tremendous! Feel free to contact me for more information about the above or to see property.
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