What does 2009 look like?

As many of you know, I have been on the "Now Is A Great Time To Buy" bandwagon. Here are some more reasons why if you are currently in the market to buy, you should buy. If you are renting, and think you want to buy, then talk with a mortgage lender to determine if and when you can buy.

The decision to buy has may factors related to it. Let's take a look at 2005 versus now, 2008-into early 2009. In 2005 there was a shortage of inventory (homes). There were historic low interest rates (a great thing). It was extremely difficult to find what you would like to call your dream home and as a buyer, you had absolutely no negotiating power. All of this equalled a fantastic sellers market and a not so good buyers market. Sellers were able to command the price they wanted for their home and buyers bought.....they bought a lot. In 2005, the average interest rate for the year was a mind boggling 5.84%. Imagine that, 5.84%, and REALTORS could not keep inventory in stock.

Now, let's fast forward to 2008-2009. There is a very large and diverse supply of homes on the market today. Inventory is plentiful. Rates, well they are again and remain at historic lows. The average through 2008 was 6.03%. Currently, for 2009, the average is at 5.09%. Today, you are looking at 4.875% for a 30 year fixed loan. The dream home, not as hard to find. With rates lower today than in 2005, and inventory a plenty, well, trouble is settling on one dream home. You as a buyer, the pendulum has swung from no negotiation power in 2005 to practically all the negotiation power in 2009.

This is more evidence of why today is the day for you to entertain buying. With good credit, in line debt to income, and assets and reserves in the bank, you are truly in the best position to buy your dream home. Don't delay, call your loan officer today.

Here is an interesting take that Dave Stevens, COO of the Long and Foster Companies posted a few weeks ago. It outlines some remarks from folks you might know. Enjoy!