No one knows what the short term future will hold in terms of real estate - from home prices to taxes to mortgage rates and qualifying guidelines. What we do know is that homes are now available for a fraction of what they would have cost a few years back, and mortgage rates are very low now for qualified borrowers.
I would recommend speaking with a local, reputable, bricks and mortgage lender to get a feel for where you are at financially (mortgage-wise). See what you qualify for now, and if your credit or debt situation needs some work then set up a game plan so that whenever you do decide to take the plunge you are able to take advantage of the best terms available.
Feel free to contact me if I can be of any assistance
Home Loan Consultant
There are many articles online from experts (not real estate agents) concerning not trying to "time the market". Inevitably you will make an incorrect decision. Keep in mind that economic conditions may change and interest rates may increase by next summer.
I would agree, that the market appears to be near the bottom in portions of southeastern Michigan, but each and every neighborhood might be different. Your Buyer's Agent would be able to run comparable solds for an area to help you choose homes with the possibility of increasing in value.
Keep in mind, that the recovery period may take 5 or more years, depending upon economic conditions.
By most economists predictions, Michigan is near or very near the bottom. This economic turmoil started in Michigan, and it logically appears it is going to end here, first. With rates at near 5%, and home values where they are, I would encourage most people who are planning to stay here three years or more to most certainly very seriously explore buying. I put my money where my mouth is and upgraded my primary residence late in 2008, turning my prior residence into a rental. It truly is an outstanding opportunity for buyers right now!
I would be more then happy to provide you data, answer questions, provide resources, etc. You can visit me online at http://www.DoorToDreams.com, and I hope to hear from you.
Derek Bauer, Associate Broker / Realtor
Real Estate One - Farmington Hills / West Bloomfield
734.678.4745 - direct
There are some great things in your favor for buying this summer. Nobody can predict what will happen next summer.
1 Interest rates are historically low. Who knows what they will be next year? You can afford much more house with lower interest rates.
2. FHA loans mean you don't have to put much money down.
3. Prices are GREAT~!
4. The government is offering a $7,500 credit to home buyers that goes away this summer under current legislation. They are looking at extending it to the end of this year, but that has not been approved. There are other things in the stimulus bill that are being considered in order to incentivize you to buy in 2009.
I would love to talk to you about your purchase. Please feel free to give me a call.