With three significant conditions converging together in one place in time we are experiencing a never matched opportunity to invest in real estate. We now have mortgage rates below 5%, the more then likely extension of the $8,000 first time homebuyer credit, and record low prices in the Lower Keys. How long it will last is unknown, but it is here and it is happening now.
The week of October 9th showed an average 30 year mortgage rate of 4.87%, down from the prior week average of 4.94%. This has actually contributed to an 18% increase in refinance applications. The Federal Reserve has announced slowing down programs intended to lower rates, but it is predicted that there will be little change in the next 30 to 45 days.
The $8,000 tax credit for first time home buyers, due to expire November 30, 2009 is most likely to be continued for at least six more months. There is even one bill sponsored by a senator from Georgia that is proposing that it not only be extended, but it be for $15,000, no longer be for only first time home buyers only, and have no maximum income caps (currently $75,000 for a single person and $150,000 for a married couple). Wow, that would really crank things up to the next level!
Last, but not least, everyone is so well aware of the fact that we have never seen prices this low. In some neighborhoods the values have gotten in the time machine of real estate travel and gone back 8 to 9 years. A family can now actually buy a home and have a monthly payment less then rent. We no longer need an affordable housing program, it is here, and investors, you can now buy and actually have a positive cash flow.
The planets will most likely never align together in this way for a very long time, call me today to talk about your next real estate purchase.
http://kwhomes.net/
http://joannetarantino.blogspot.com/
http://activerain.com/joannetarantino
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