An article out today on CNN.com points out what appears to be a light at the end of the housing tunnel. Simply put, because of falling home prices and favorable mortgage conditions, it is the best time to buy a house since 2004. Key points of interest:
- "The Cleveland-based bank National City Corp. (NCC, Fortune 500), together with financial analysis firm Global Insight, revealed Tuesday that more than 88% of the 330 housing markets surveyed showed price declines and improved affordability during the last three months of 2007."
This is determination is based on measuring the ratio of a home's value (what it should cost,) to what the actual price is. Also,
- "Soaring foreclosure rates have added inventory to many housing markets, depressing home prices further."
Just as--in the boom market--new construction homes will push prices upward for resales, the high rate of foreclosures & bank owned properties are having a slowing affect on all home in any given area. While I wouldn't recommend a first time buyer target foreclosures necessarily (more on why later,) they will still see an advantage in lower prices all around.
No comments:
Post a Comment