Can home buyers Stand Some GOOD NEWS for real estate!!!

March 24, 2008

Finally, some good news we have been waiting for in the National and Phoenix area Real Estate Market.

‘Sales of existing homes rising modestly for the first time in seven months and inventories falling, the National Association of Realtors reported today’

Sales have picked up for several reasons.

1) Lower home prices – yes, prices are going down, especially here in the west, and specifically, Phoenix, Scottsdale, Fountain Hills and other East Valley cities where we saw one of the biggest national drop. Inventories remain high. However, lower prices are creating buying opportunities which we haven’t seen in several years

2) Easing of interest rates – simple. Lower interest rates allow one to buy the same home with a more affordable monthly payment. Although, credit is a little more difficult to come by. Stricter lending terms, larger down payment requirements make the likelihood of future foreclosures less and a prolonged housing recession less likely

3) Buyer confidence is returning – Buyers dictate pricing. Period! Lower home prices and better interest rates make buyers more eager to dip a toe in what has been a scary real estate pool. Buying can have a positive effect on consumer and home buyer sentiment pushing this housing negativity further back in our rear view mirror.

Does that mean we have hit a bottom? Is the end in sight? Is it time to buy??

Inventory levels would indicate that we have some time to go. However, The Federal Reserve Chariman Ben Bernanke appears set to continue to lower interest rates. Federal lawmakers are committed to work with Government backed lending institutions (Fannie Mae , Freddie Mac ) to stimulate the Real Estate Market and banks are working with consumers to help keep them in their homes.

Don’t let the naysayers fool you. If it’s not the time, to buy, there is plenty to indicate, at least here in Maricopa County and the cities of Scottsdale to suggest we are very close.

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Copyright © 2008 By James Wexler, All Rights Reserved. *Can home buyers Stand Some GOOD NEWS for real estate!!!*

Contact James Wexler (480) 221-8080

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Written by James Wexler · Filed Under Articles, Buyers, Sellers 

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