Tuesday, December 9, 2008

Low Prices, Low Rates Mean Opportunity


Housing prices have fallen dramatically all over the country and rates on 30-year fixed-rate mortgages are already close to 5.5 percent. Experts say it's possible, with government encouragement, that rates will fall as low as 4.5 percent.Now is the time for first-time to step up.


Here are some things to consider:


Prices have always softened in the winter. As temperatures fall, bargain hunters will have bigger then usual opportunities.
New homes likely to become scarce. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, said he believes that a steep drop-off in inventory of new homes is coming soon, thanks to a rapid decrease in home builder activity.
Location. Location. Location. Buying the best-priced house in a really good neighborhood is still smart.
Will values go up? You may have to live in a house for 10 years, but over time, buyers will almost certainly make money.


Source: The New York Times, Ron Lieber (12/05/2008)

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