Yes, the housing market has rarely looked as good as it does today

The combination of low real estate prices, historically low loan rates, and a first time home buyer tax credit (that’s going to expire in less than three months on 11-30-2009, has created the perfect storm of sorts for buyers who’ve been sitting on the fence, waiting for the market to recover.

• Real estate prices across the country have dropped approximately 30 percent from their 2006 peak, here in the High Desert it is closer to 66%, and are beginning to show signs of increases, an indicator that prices aren’t likely to go much lower, according to some housing analysts.

• Last week, Standard & Poor’s reported that the Case-Shiller U.S. National Home Price index rose in the second quarter, the first quarter-to-quarter increase in three years. Its index of 20 major cities also rose, with only two areas reporting declines. This data suggest that home prices may have reached bottom during the second quarter, and have now begun to rise. In California, July marked the fifth consecutive month of “month-to-month” increases in the state’s median price.

• The inventory of unsold homes index increased over 7% across the country in July, according to the NATIONAL ASSOCIATION OF REALTORS®.   In California, inventory levels declined to 3.9 months, from 6.9 months a year ago, and are well below the long-run average. This index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

• Buyers sitting on the fence should note that the federal tax credit of up to $8,000 expires at midnight on Nov. 30, 2009. With mortgage loans taking longer to close than in years past, buyers should start working with a REALTOR® now to ensure they find the right house for their needs, and close escrow by the deadline.

• Homeownership provides many benefits, including security, pride of ownership, a sense of community, and decent investment returns as a bonus. Those thinking of purchasing a home should consider these benefits when making their decision of whether or not now is the right time to buy a home.

To read more about The Market Has Rarely Looked Better

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