Let’s agree that 2008 was a tough year for most people. Not atypical for an election year, right? The federal government continues to bail out the financial industry, the auto industry and countless other companies.
Now is the time for homeowners, or future homebuyers, to benefit from our current situation. Interest rates are at an all time low, and with the government committing to buy hundreds of millions of dollars worth of mortgage backed securities, some people are speculating that mortgage rates could go as low as 4.25% sometime in January. Another real estate incentive is the first time buyer tax credit (loan). Or, if you’re one of the unfortunate ones looking at a short sale, the government is at least now giving you the difference tax free. Low vacancy rates and high foreclosure rates make for a great rental market for you Investors out there.
Are we at the bottom of this market? The only thing that we have to go by is history, and history tells us that when there is correction in the market, the bottom lasts 12-18 months. Experts say that we’re now into our 13 month down. The time to get in the market is now for the following three reasons:
1. We have a quality inventory to choose from with the least amount of buyer competition.
2. If, you can afford to hold your new real estate purchase for long enough to see the gains (3-5 years), then you will realize a good profit.
3. Lastly, if you miss-time the bottom, the only way you know that is when it is too late!
Written by Perry & Co Real Estate Agent Brad Colburn
Filed under: Denver Colorado Real Estate, Market Conditions, Perry & Co. Agents | 2 Comments
Tags: Brad Colburn, Denver, Denver Colorado Real Estate, Perry & Co