Experts: Buy Homes Now Before Market Turns Around
updated 12:58 p.m. PT, Fri., June. 20, 2008, on www.msnbc.com
BALTIMORE – The stalling economy is having its effect on the real estate market in Maryland, as foreclosure rates are up and the number of approved mortgages is down. But experts said that it’s currently a good time to buy a home, as long as you know how to shop for a mortgage lender and don’t get taken by the increasing number of mortgage frauds.
Real estate broker Aimee Bader said that homes are staying on the market four times longer than last year at this time, which is bad news. But the good news is that, even though the market is down, the state isn’t seeing the bursting bubble decrease in property values that other areas are experiencing.
“Prior to 2007, Maryland was experiencing 12 to 20 percent gains that can’t continue. So, the market has corrected itself, and it’s a natural correction,” Bader said. But she said it will turn back around.
The Justice Department in Washington has indicted more than 400 people in the real estate industry since March during a crackdown on mortgage fraud. To make sure you don’t become a victim, you need to shop your loan to at least three different lenders, explained Bader.
“Every lender is required to provide what’s called a good faith estimate, which expressly shows what the charges will be, so there should be no surprises at closing,” she said.
Sage Policy Group economist Anirban Basu said it’s a vicious cycle — the bad housing market weakens the economy, which then lowers the housing market even more. But he said those low prices could actually be the key to pulling the state out of the economic slump.
“At some point, prices fall far enough that people are induced to come back to the market, and that’s when you see recovery,” he said.
Analysts predict the housing market and economy will start to turn around in 2009.
While this article posted in msnbc.com is specifically talking about Maryland, it may be a good time to buy property everywhere. With interest rates rising, the price of homes are sliding back down to a reasonable level. Visit us at www.iappraiseforyou.com to find out more.