Almost Prime Time

The stars are aligned and conditions are prime to buy real estate. It is beyond textbook perfect...almost. 

Here's what I mean. Listed prices for condominiums and single family homes are the lowest they have been in years. This is based on most sellers now pricing their homes realistically per the market performance. Low listed prices combined with the fact that interest rates for 30 year fixed mortgages may decrease to 5.5% this week, makes it very clear that something magical is occurring for those who want to buy real estate.

Rarely, have both the listing prices and mortgage rates been simultaneously low.
Historically, even in the early nineties this phenomenon did not occur. The market was only sluggish for two years before the extreme escalation in values started.

If the market starts to rebound one year from now, it will most likely take another three years to see the same levels of appreciation as we did before the recent correction.
Consumers would serve themselves well to pay attention to the signs. Low mortgage rates, low listing prices, multiple foreclosures and short sales. This is indeed the time to make that leap.

But here's the double edged sword. Keep in mind that obtaining a mortgage in today's market is not as easy as it once was and can be downright impossible. The recent mortgage meltdown has put stricter qualifications on potential homebuyers. Although there is tremendous opportunity out there reflected in low listing prices and foreclosures, not everyone can take advantage. Lenders are no longer giving away money. And if you plan on buying a foreclosed property keep in mind that you have to be pre qualified and bring a deposit of up to $5,000 the day of the auction.

So although it is a good time to buy, you have to have clean credit, strong income and a good eye for opportunity.