The Real Estate Market is Back!

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Real Estate

The most recent data is indicating that in June pending real estate sales will be very near last year's levels.

Of course this is a dramatic improvement from the last 3 months. Why is this happening? Several good reasons.

First, interest rates are at historic lows. Did you know that every point drop in the mortgage interest rate increases your buying power by 10%? So buyers are now able to buy homes they could not afford when rates were higher.

Second, there is quite a bit of pent up demand built up over the last months. The market has been held down and many put off buying for a time. They are back!

Third, home prices are not rising as fast if at all at the moment. So considering the lower interest rates and prices being more reasonable home affordability has improved.

If you are a buyer there may not be any time better to buy than right now. If you are going to finance, check out your payment on the property you love... you may be surprised at how affordable it is now. Also, if you look at your net payment after the tax savings you may gain with interest and property tax deductions there is a good chance that payment will be less than what you would have paid in rent!

If you are a seller note that prices are not rising as fast as in the past which means there is less incentive to hold on to your property waiting for appreciation. Inventory is low right now... which means prices will be fairly stable for the time being. Therefore this really is a good time to sell if you are ready.

Let me know if you have any questions about your specific neighborhood. I can drill down on the data and let you know how your neighborhood is doing versus the entire county.

My best to you all!