It has been said “The only three rules of Real Estate are location, location, location.” I’d like to add a fourth, “TIMING”!
All indicators are loudly sounding the “Buy” alerts… or as Cramer’s button screams, “ Buy, Buy, Buy” on MAD MONEY, CNBC.
Let’s review some of the signs in today’s Real Estate Market that confirms the time to buy is NOW:
- Interest rates are at the lowest 30 year mortgage rate (below 5%) since Freddie Mac began it’s weekly survey in 1971. (source: bizjournals.com)
- Existing U.S Home Sales spiked 5% in February to a seasonally adjusted annual rate of 4.72 million from a rateof 4.49 million in January (source: money.cnn.com)
- First time home buyers AND anyone who has not owned a home in the past 3 years are eligible for an $8,000 tax credit for the purchase of a primary residence between January 1, 2009 and December 1, 2009. NO REPAYMENT! (source: FederalHousingTaxCredit.com
- National Association of Realtors (NAR) Housing Affordability Index is a whopping 173 (123.4 in the Northeast). Factors contributing to this index include median home sale prices, mortgage percentage rates, monthly principal and interest payment as related to income, as well as median family income. (source: NYSAR)
- National Association of Realtors reported existing home sale prices corrected by 15.5% (4.4% in the Northeast) making homes more affordable. (source: NYSAR)
- National Association of Realtors Research Report indicated Real Estate has delivered the most consistent, positive return over any investment during the past 40 years. Nationwide, the average annual appreciation over 10 years was 5% given the leverage in purchasing a home. (source: NYSAR)
- Realty Trac ranked New York among the states with the lowest number of foreclosures. In fact, of the top 10 most populated states, New York had the fewest. (source: Realtytrac.com)
- The Federal government is investing billions of dollars and adopting new programs designed by the most brilliant minds to stabilize and grow the US Housing Market. (source: www.wikipedia.org/wiki.TARP)
- Although the regular conforming mortgage limit remains at $417,000 on a single family residence, there is a high conforming mortgage limit of $625,000 with an expected increase to $729,750, which is guaranteed by Fannie Mae and FHA. (source: www.hud.cov/offices/hsg/fhahistory.CFM)
- On Long Island, there was a 21% jump in the number of Home Sales closed in March 2009 compared to February 2009, with a further increase of 29% for fully executed contracts, same time period. This increase in month to month activity, indicates a floor is being established. (source: MLSLI)
- East End Real Estate has proven its undeniable blue chip quality. At www.LIProfiles.com/Historyselect.asp there are 10 year stats for Long Island specific to each hamlet. In Bridgehampton for instance, the Median Home Sales Price skyrocketed from $300,000 in 1997 to $2 Million in 2006.
- Real Estate is the safest haven for your hard earned cash, in my experience. Unlike a bank, there’s no $250,000 limit insured and unlike a stock, it can’t ever be worth pennies and most importantly, you can see it and touch it…
Homes rejuvenate our souls, provide shelter and a personalized space to gather with friends and family. Lastly, those of us aged Baby Boomers, have seen enough volatility to know – Real Estate is the best way to invest in our future and there hasn’t been a better time, and one as beneficial as now.
Timing has never been better.