The National Association of Realtors just issued statistics for February home sales, causing Wall Street to rally in excess of 500 points. Home sales percentages were up rapidly at a rate not seen since the late 1990's, with almost half of all homes purchased in the month of February consisting of foreclosures. Add the following factors to the mix, and we are in the beginning of the next housing wave:
Large unsold home inventory. Buyers have even more choices than ever before.
Interest rates at historic lows. Although banks have tightened their lending requirements, buyers who have few problems with credit can still secure a loan with good financing terms.
Negotiating power. Sellers are more motivated than in recent years, giving buyers an edge.
Additional factors to consider are foreclosures. Although southwestern Virginia does not have a large number of foreclosures, buyers who can supply a sizeable earnest money deposit and can wait for closing can save substantially.
Finally, the federal government now offers an $8000 tax credit for first time homebuyers. This credit does not have to be repaid. Anyone who has not owned a home in the past three years qualifies, including a spouse.
Buyers who do not have an existing home to sell are in an especially good position, including the first time home buyer but also anyone seeking to purchase a second home.
Now is an exciting time to make a home purchase, so contact me today!
