America’s real estate is in unchartered waters: in some areas, existing home prices have dropped considerably, while in other locations prices are holding steady. The stock market is down, unemployment is climbing, and businesses are predicting a long, slow recovery. Yet it is at times like this that we are reminded that some of the best deals are possible right now.
On the national average, sales of existing homes declined in January. Inventories fell to a two-year low. According to the National Association of Realtors (NAR), buyers are waiting to see how details of the economic stimulus package will affect them. NAR’s Chief economist Lawrence Yun reports, “The drop in total inventory is an encouraging sign because the number of homes on the market has declined steadily since peaking in July 2008, and inventory is at the lowest level in two years.”
The Obama administration has responded to NAR’s call for lowering interest rates, giving buyer incentives, reducing preventable foreclosures and reinstating the higher loan limits for FHA, Fannie Mae and Freddie Mac. With these measures now being implemented, housing values should stabilize and the housing market should begin to strengthen.
For buyers and or sellers, it is important to understand that location has never been more pertinent to pricing. There are buyers ready to move and popular locations are on the top of my list for long-term investments.
If you have questions or concerns contact James Aduna 415.901.2797 or jaduna@ubayp.com
