Where have all the buyers gone? Sales are falling to a yearly low for 2011 and there are fewer first-time buyers on the market according to this article in the Seattle Times. People who have not owned a home before have amazing opportunities to do so now, so why are there still so many homes on the market, some which sit for months at a time before someone takes interest? Perhaps after the recent lending fiasco and everyone losing their homes younger families that typically make up the first-time home buyer is more cautious and even nervous about signing up for such a financial commitment. This is understandable, but be rest assured that now is definitely a “buyer’s paradise!”
Here are a few reasons why a first-timer can buy with ease and confidence according to recent news in the Seattle Times.
- Lenders are foreclosing fewer homes than before. This means that not as many people are losing their homes these days as in four to five years ago. Part of this is because the banks are so back-logged that they simply don’t have the time, but it’s also partly because of this next reason buyers can relax.
- Fewer homeowners are underwater on their mortgages. The number of people who are behind on payments are declining. This is mostly due to smarter loans that have stricter rules about how much house a buyer can actually get. With a responsible lender, a buyer is more likely to receive a loan that is better proportionate to their income.
- Mortgage rates are flat-lined after dropping to yearly low. If you have good credit then now is definitely the time to get out there and make an investment. With loan rates available this low and the market being the way it is, monthly mortgage payments are like paying rent, if not cheaper in some cases.
There may never be a better time for buyers. There are great incentives being offered for first-time buyers and investors that have not been offered before, check out Fannie Mae for example. Housing process are continuing to drop, but won’t be for long as fewer foreclosures hit the market. Interest rates may never be this low again, and lenders are more responsible now to give a loan that fits your wallet. This is the perfect recipe for a solid investment. In many foreclosures, where the home being sold at 20% less than its value, maybe even lower, all the home needs is a slight make over and someone to live in it for a short while and it becomes instant equity. So come on out you leery buyers, and feel the water, the temperature is great!