It's May… spring flowers are in bloom and qualifying for the homebuyer tax credit is history. So what happens now?
There are probably as many opinions as there are people, but according to an April Prudential real estate buyers survey 65% said the end of the tax credit will have little or no effect on their interest in buying a home. While 12% said they expect real estate prices to decline over the next year, 46% expect them to rise. Over the next five years 79% expect prices to rise, 20% substantially. Among current renters, 75% still said they felt owning their home was a better long term choice than renting.
The bottom line is, buying a home is not just an investment, it is filling a basic need. Everyone needs a place to live, and real estate has historically been a good long-term investment. People buy and sell homes in all markets. What really matters is when the time is right for you.
No one knows what is going to happen next, but according to a recent lender update… we see a growing economy, improving employment, stable home prices, and less restrictive (though higher rate) mortgages in our future. In other words, we see a market for buying and refinancing today.
For buyers with stable jobs and good credit it is still a good time to buy. Wondering if mortgage interest rates are really that low or if the talk is just a lot of hype? Check back on Friday for a 40-year chart of 30-year interest rates… it's pretty amazing!
Sharlene Hensrud, RE/MAX Results - Email – HomesMSP.com
