Now is the Time! The Time to Buy a House.

Now could be the best time in history to buy a home. Presuming, of course, you have the money and the credit to do so.

The average rate on a 30-year fixed mortgage hit record lows last week, down to 4.01%, according to Freddie Mac. The Federal Reserve's recent "Operation Twist," which was designed to do just this, appears to be doing the trick.
There are a lot of reasons to consider buying a home right now. The big savings on interest is just one of them — the difference between a 4% rate and a 5.5% rate on a $200,000 home loan is just shy of $200 in monthly payments and can save a homeowner more than $60,000 in interest payments across the life of the loan.
Another motivating factor could be the fact that rents remain sky-high in the U.S. right now, and in many markets it's actually cheaper to buy a home than rent a two-bedroom apartment.
While housing might not be at a "true" bottom just yet, there are many signs it is nearing one in many markets. Housing prices rose from June to July in 17 of 20 cities tracked by the Standard & Poor's/Case Shiller home price index. It marked the fourth straight month of rises in most U.S. cities.
That's to say nothing of the case-by-case bargains to be had. Here are two personal stories that show the opportunities to be had in this housing market:
I live in the Washington, D.C., area and purchased a short-sale home in 2009. Although three months of back-and-forth with the bank drove my wife and me crazy, we finally closed on the property just hours before a foreclosure auction — after which my Realtor asked if I wanted to immediately re-list my home with him for about 30% more than we had just paid. I had purchased the property for a growing family and good schools, so I politely declined. But the message was clear: If you suffer through a painful distressed property purchase, you get a hefty discount for your trouble.
On the other side of the coin, my brother purchased a newly constructed home in Roanoke, Va., as his wife attended medical school at Virginia Tech. Seemed like a good idea at the time — but now he's 40% upside down on his house and renting it for barely enough to cover the mortgage. Unfortunately, he now lives six hours away, so it's no picnic to manage his rental. My brother recently decided he has enough stress in his life so he will list the house at slightly below market rate just to get rid of it — even if it's going to cost him big-time. Very bad for him, but some lucky southwest Virginia family is going to get a nearly brand-new home for a heck of a deal.
I'm sure many of you have your own story to tell about the housing market. Share it with me (see below) or better yet, post it in our comments section so everyone can read and weigh in.
There are plenty of other bank-owned homes or desperate sellers that folks can pursue, with deals akin to the two listed above. But the million-dollar question, of course, is whether prospective homeowners can get a loan — and if they can, whether they want one.
After the mortgage meltdown, banks have wisely tightened lending standards . That's as it should be, but it understandably shuts many folks out of the market. Other people have good credit but don't have the necessary savings for higher down payments some lenders now require. That's to say nothing of folks who perhaps could sign up for a new home but are just too uncertain about their job or retirement.
Whatever the reasons, it all adds up to a decided lack of demand in the housing market. Many factors have created great deals right now, but those factors also might just be too daunting for many to overcome right now.
I remain convinced that I made the right choice in buying my home — not because it was an "investment," but because it's in one of the best public school systems in the country and I now have two beautiful daughters who wouldn't fit very comfortably in an apartment. And by the way, that two-bedroom apartment rented for only about $100 less a month than my current mortgage. Buying a home was the right thing for my family, and for my finances.
And perhaps that's the biggest lesson of all: The best reason to buy a house is because it will become your home — not a path to profits.
By Jeff Reeves
information provided by KCM Blog

KCM Blog

Housing Affordability: Price to Income

You may pay a hefty price for the convenience of not having your property on the market right now.

Right now Sellers believe they want to wait until Spring to put their home on the market because that is what they hear to do.  This market is strange.  We are not in the ordinary anymore.

Prices are going to fall.  Do not wait.  The demand will decrease supply will increase and prices will go down. If you are considering putting your house on the market, do not wait until spring.  If you wait you may pay the price in the end.

Information supplied by KCM blog.

Why Wait? It is time to buy! written by KCM Blog

U.S. house prices have plunged by nearly a third since 2006, and homeownership rates are falling at the fastest pace since the Great Depression.
The good news? Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation's ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades.
Two of the silliest mantras during the real-estate bubble were that a house is the best investment you will ever make and that a renter "throws money down the drain." Whether buying is a better deal than renting isn't a stagnant fact but a changing condition that depends on the relationship between prices and rents, the cost of financing and other factors.

But the math is turning in buyers' favor. Stock-oriented folks can think of a house's price/rent ratio as akin to a stock's price/earnings ratio, in that it compares the cost of an asset with the money the asset is capable of generating. For investors, a lower ratio suggests more income for the price. For prospective homeowners, a lower ratio makes owning more attractive than renting, all else equal.  Now is the Time to BUY!

Written by KCM Blog.  

Falling house prices?

     In a normal real estate market, it may make sense to wait for the spring buyers’ to appear before placing your house up for sale. The current real estate market is anything but normal however. The increase in supply of distressed properties will overshadow any increase in demand for housing over the next 6 months. This is reflected in the findings of two groups: Clear Capital and JPMorgan Chase.


i.e. “The housing market has yet to demonstrate the fundamentals necessary to overcome a seasonal slowdown over the next six months, which drives our projected 3.2 percent drop in national home prices through the first quarter of 2012.” Clear Capital
i.e.  “Home prices could dip another 6% to 7%, before hitting rock bottom in early 2012.” JP Morgan Chase



If you are thinking of selling, it would be wise to put your house on the market before prices fall again.  Please call or email me for your free no obligation Market Analysis in the Denver Metro Area or I can get you a great Re/Max Referral outside the area or state.  No obligation!

Denver housing statistics

Closings of single family homes in Metro Denver is 2,610 for the month. That is lower than last month but UP by almost 5% over last year. That is reflected in the current inventory of 12,613 homes which is DOWN over 28% compared to last year at this time!   LETS KEEP THIS GOING!