Happy New Year!
2010 is no more and as the New Year is upon us, great expectations, hopes, and optimism is at an all time high for the year 2011. For many, we have anxiously jumped into the year with goals and desires to improve our own lives.
Many new years resolutions involve the desire to quite smoking, excersise more, spend more time with family, vacation more and on and on. How many will be working towards these new goals in 30 days, 60 days and how many will throw in the towel? My hope for all is that each day is met as an opportunity to improve one's life and that these goals are met and succeeded.
Personally I have many personal and business related goals for 2011. Business related goals include helping many achieve the dream of owning their own home. Possibly you already own a home but want to move from your townhome or condo to a single family?
Question is, what can we expect from 2011 and is this a good year to purchase a home?
While I don't hold that magic crystal ball its safe to point out that there are many reasons why you shouldn't wait to purchase your next home or your first home. Lets start with the basics.
Prices
Home prices remain at 2000-2002 limits and in some cases even lower. What does this mean to you? Well simple, if the average person purchased a home in those years the appreciation for that home has gone up and then gone down dramatically in recent years back to this level. For you as a buyer, you are seeing some amazing opportunities to purchase homes that may not see prices this low ever again.
We've seen the average price of a home fall 30-50% from their highs in 2006 and this represents a huge opportunity!
Interest Rates
Interest rates have slowly crept up on the past month and may continue to rise. They are however, still historically very low and should be taken advantage of before they rise much more. If you think that rates may fall again to under 4% and gamble wrong will you regret that? Or, will you see that even though rates have moved up as of late, they are and remain very low and coupled with home prices create a great opportunity? I encourage the latter.
Supply & Demand
Everyday we are confronted with supply and demand and it affects our life in all areas. When we go to the gas station, grocery store or make travel plans, the prices we see are due to this force of supply and demand.
In real estate this remains true as well and in the scenario where the supply is far greater than the demand we call this a Buyers Market. This simply implies that the buyers have an advantage as they are at a premium. Many sellers will take much less for their home and banks are willing to take great losses on mortgages that were foreclosed on due to this. As a buyer, there are so many homes that are available that may fall in to an average buyers price range that it also may cause a lack of motivation to move quickly on homes of interest. I see on a weekly basis however that even in this market, some homes when priced right have multiple offers and can't be over-looked or expected to sit on the market for long.
We may never see a better combination of home prices and interest rates and I hope for all those that have thought about home ownership to consider contacting a professional lender today to discuss this. Once you have spoken with a lender/banker and have determined if you are approved to purchase a home and for what price, then contact a realtor for additional assistance.
For additional information or if you would personally like to discuss your own options, please feel free to contact me direct. I'm available for free one on one consultations and to assist you in any manner as it relates to your real estate goals.
Thanks as always for reading my blog and feel free to use our website at http://www.advantageil.com/ for your home shopping :)
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