In this difficult economy most people wonder when we will reach the bottom of the recession. They may ask when things will begin to pick back up including the housing market. There are many indicators that we are close to the bottom, but no one really knows where it will actually be and when things will begin their upward climb.
As a real estate agent these thoughts can certainly be running through your mind, but why wait until we reach the bottom? What's stopping you from deciding that the bottom is here or at least close enough for you to begin to make things better?
The bottom may be closer than we think. With declining home prices and record low mortgage rates, close to 60 million families, which is almost half of all U.S. households, can now afford the median-priced new home of $200,000, based on the numbers that were recently released by the National Association of Home Builders (NAHB). Furthermore, together with the $8000 tax credit, 30 year fixed rates below 5% and the abundant inventory still available to choose from, many potential buyers see this as a once in a lifetime opportunity to buy a home.
Applications for U.S. home refinancing loans have greatly increased which have been fueled by record low interest rates. The seasonally adjusted index of mortgage applications increase of 32.2% included both refinanced and new home purchase loans.
Also, sales of previously owned homes jumped up 5.1% in February which was the largest jump in nearly six years as first-time buyers took advantage of foreclosures and deeply discounted properties.
Another good indicator that the market might be on the upswing is that asking prices are beginning to rise in San Diego and Orange County, where declines have been so hard hit.
Waiting until the recession bottoms out, whenever that may be, may set you up for disappointment in many ways and you could be losing the opportunity to climb back up to a stronger financial foundation right now.
Down markets mean buying opportunities in real estate. Now is the time to look back into areas that were once unobtainable for some of your clients that may now be within their price range. Deals are all around.
Decide for yourself if today is the bottom of your recession and start that rebound back. Seize the day and make it count. There's no time like the present to get a new client and make a sale.