Waiting to buy might not be in your best interest!

Buyers: We’re in a buyer’s market! But history shows this market won’t last forever and some early implications are showing that it may be changing sooner than you think. Here’s why you may want to act now, before the market begins to adjust:

Fact #1: Affordability is increasing
Fact #2: Interest rates remain attractive
Fact #3: Many sellers are motivated
Fact #4: There are a lot of homes to choose from
Fact #5: Historically speaking, Utah real estate is a strong, long term investment

Why You May Not Want to Make the Mistake of Waiting:
Many buyers are sitting on the sidelines waiting for Utah real estate to “bottom out,” but doing so could cost you plenty in terms of higher housing prices and interest rates. Locally, Salt Lake City, according to an April 29 Forbes article entitled “Recession Proof Cities,” seems to be holding its own as well. The article notes, “A November 2007 report from the U.S. Conference of Mayors projected that Salt Lake City would be one of the few large cities in the country not to suffer a decline in gross metropolitan product from the mortgage crisis.” Furthermore, Lake City’s unemployment is among the lowest among the country’s 50 largest cities and it continues to create job growth in spite of national economic indicators.

What The Experts Are Predicting:
The National Association of Realtors is projecting that home sales will trend up this year. According to the national real estate organization’s April 8, 2008 market update report entitled “Existing Home Sales to Stabilize Before Upturn in Second Half of 2008,” “Little change is expected in existing home sales over the next few months, before improving notably during the second half of the year.” Lawrence Yun, NAR chief economist said the market will come into clear focus this summer, noting “Existing home sales could start to show a sustained increase within a few weeks, unless there are some additional economic problems or excessive inflationary pressure."


Early Implications Show That the Market May Be Changing:
While the stars remain aligned for buyers, in recent weeks there have been some noteworthy developments that could mean positive growth for real estate and a shift towards a more normalized, balanced market. According to an April 25, 2008 Realty Times article entitled, “Real Estate Outlook: Index Says Positive Growth Underway,” there are several implications that show real estate growth may be on the horizon:
• Applications for mortgages to buy houses were up again, for the second straight week, according to the Mortgage Bankers Association of America's national survey. Applications for FHA loans to buy houses jumped by 3.5% and conventional purchase applications rose 2.1%.
• The federal government reported that house prices nationwide stopped their slide between January and February – and actually increased by six tenths of one percent.
• Interest rates remain well under 6%, according to the Mortgage Bankers, with 30-year fixed rate loans last week averaging 5.74% and 15-year loans at 5.27%. The Federal Reserve is likely to knock another quarter percent off short term rates next week.
• Freddie Mac announced plans to pump up to 15 billion dollars into the "jumbo conforming" loan market.


A Good Market:
The bottom line is that this is a very good market for buyers but it won’t last forever. And while it is hard to predict when the market will officially “bottom out,” the only way you may do so is when it has begun to rise again. We are starting to see homes sell, largely in part thanks to a drop in home prices, attractive interest rates and a large number of homes from which to choose. All of these factors are changing consumers’ outlook on real estate.