The Loan Lady Blog

Have we reached the bottom of the market now with real estate sales moving again and the median home price rising?  Many think so.

I have been busy lately with buyers who have been on the fence, thinking home prices would continue to drop.  They are now working hard to complete their loan approvals and get into contract to purchase a home before any rise in prices or interest rates.  There is also a rush for first-time home buyers to get into contract by April 30 and complete the transaction before June 30 to take advantage of the homebuyer tax credit.

In our area we are seeing multiple offers on homes--particularly the "bargain" properties that are foreclosure sales or distressed property.  Multiple offers lead to higher prices as buyers compete with each other.  It's the basic law of supply and demand.  As demand increases, prices will increase.

Banks may be controlling the flow of properties on the market.  By slowly releasing their foreclosed properties, they keep the supply limited and the demand high.  On one hand, you can look at this as manipulating the market for their own benefit--to gain higher and higher profits as they sell off property.  On the other hand, there have been rumors that banks are planning to dump all their foreclosed properties on the market at once.  This might be a boon to home buyers looking for a bargain, but would have a devastating effect on the recovery process.

Home buyers who have been waiting for a better time to buy should realize that time is here.  Home prices are still good, rates are still low, and first-time buyers can get the tax credit.

Go for it.  Bottom's up now so don't wait any longer!