Is now the right time to get into the housing market? That’s what many people are asking themselves. With the price of real estate falling on a daily basis and more and more homes going into foreclosure, the future is looking bright for people who couldn’t afford to buy a house when the market was more favorable for sellers. While it is true that many mortgage lenders out there have either decided to stop giving out new mortgage loans or tightening up their qualifications for a mortgage loan, there are still mortgage lenders out there who are willing and able to take a chance on a qualified buyer.
The key word there is qualified. You probably won’t find those no down payment loans, or interest only loans anymore, mortgage lenders are already taking a bath on those. But the truth is that those should never have been offered in the first place. Because of the creative and sneaky financing that was going on during the first part of the new millennium, the housing market is in a sour tasting pickle right now. However, if you are a buyer who was just biding your time, and waiting for the price of real estate to come back down to earth, you may be in luck. That being said, many buyers are still very wary of getting into a new home right now, fearing that prices will go down even further.
For those of you who want to get into the housing market, right now may the best time ever because, according to the National Association of Realtor, “the market is expected to turn around, over the next year,” which means, “existing home sales are expected to rise 50% in 2009.” That means hitting a mortgage lender and getting your own piece of real estate right now may end up bringing you high dividends by the end of 2009. Not only are home sales expected to rise but so are the rates for a 30-year fixed loan, which is still extremely low based on historical data, but much higher than we saw over the past eight years or so.
I understand that with all the bad news coming from mortgage lenders across the nation it’s hard to imagine making money off of real estate anymore, but remember that real estate is cyclical. That means it will bounce back and forth between a buyer’s market and a seller’s market, and if you do your research you can hit the housing market at the right time and get the biggest bang for your buck. Mortgage lenders are still in business, so if you think you can qualify with their tighter restrictions, I say jump in while you still can.