In fact whether it is representatives and economists from Wells Fargo, Raymond James or FHFA all seem to agree that we have turned the corner. Even in the markets which haven’t bounced back up yet the pace of decline has slowed to its lowest point in years.
CNN Money reported last week that home prices are now at their lowest in 10 years. This together with more record breaking low mortgage rates and new confidence in the market is stirring up frenzy.
If buying a home is on the agenda, now is clearly the time to do it before both increased home prices and rising rates make them far more expensive. Reports of certain markets shooting up by 20% due to frenzied demand is no longer uncommon again, with real estate agents in California reporting homes frequently selling for $100,000 to $1 million over asking price.
This means anyone serious about buying a home needs to be prepared. If you aren’t prepared and your dream home pops on the market you are going to miss out. Get pre-qualified for a mortgage or make sure you have liquid funds available if you plan to pay cash. Don’t hesitate to pick up the phone and make the offer and make sure it is the best one you’ve got because there will certainly be others.
Unfortunately for those selling a home even though there is increased demand and interest in buying a home out there this doesn’t automatically mean your home equity is going to bounce back to its previous lofty high any time soon. If your home value plummeted 60% in the last few years it could still take a while for it to get anywhere near those previous numbers, even if appreciating at 20% of the current value. Make sure you are being realistic about being able to wait it out or if it is better to sell now.