Move up buyers should make hay while the sun shines.
I’m sure you’ve heard the news, July saw the biggest plunge in housing sales in years dropping a staggering 25.5 percent below the same time last year and driving fear into the hearts of even the bravest of sellers. Analysts have long been touting the possibility of a double dip recession and this news certainly doesn’t help to allay any of those fears.
Just as the previous long period of buyer tax incentives artificially buoyed the market, the end of those incentives is now helping to artificially depress it. Coupled with unemployment concerns and job uncertainty for many I think it’s easy to see why Americans are nervous of taking advantage of the historically low mortgage rates and increased affordability in housing. Young families that historically would be “moving up” in the market are nervous that they won’t be able to sell their own homes to do so. Career professionals are turning down relocation opportunities over concerns that their spouses won’t be able to find jobs in the new locations.
My advice is to look beyond the media negativity and try not to focus on the things you can’t control. Instead, consider the facts as they pertain to you. There has NEVER been a better time to buy in the Bay Area than right now; that’s simply fact. With 30 year fixed rates available at 4.025 with 0 points, affordability in Santa Clara higher than ever and excellent loan programs available for buyers in all price ranges this IS the time to consider moving to that school district you’d love or that house with the bigger kitchen and extra bedroom. Savvy homeowners know that taking a perceived or even real loss on their current home is more than offset by the buying power they now have and the opportunity to lock their loans in at close to 4% for the life of the loan!
Block out the negativity and focus on YOUR facts or you might have a severe case of the Woulda Coulda Shouldas in the very near future.