“For those home buyers who see no light at the end of the tunnel, here’s a high beam to brighten your way. The economy is so bad, you’ll soon be able to pick homes up for a song.
We’re in a perfect storm of bad economic news. When that happens, people panic, and sell their assets believing this is their last chance to get out. But others, who know that you make money when you buy, are scanning the chaos for bargains.
Here’s a snapshot of what’s happening:
-Jobless claims are up to 2004 levels.
-Oil prices have hit all-time highs of $115 per barrel.
-Energy prices for March rose 1.9%, says the Labor Department.
-New home construction is down to 1991 levels.
Inflation for 2007 was really four percent, well above the comfort level of the Federal Reserve, causing consumers to pull back on their spending for nonessentials.
The Beige Book, a report from the 12 Federal Reserve regional banks, says conditions are weakening across the U.S. and housing shows little to no sign of improvement.
Pressuring all housing are escalating foreclosure filings, up five percent in March from February and 57 percent above 2006, according to RealtyTrac.
The good news for the economy is slight, but it’s there. The Conference Board predicts future economic activity to rise as it did 0.1 percent in March.
A faint turnaround in housing is also in the air. Housing costs rose four-tenths of a percent, and rents rose two-tenths of a percent.
The Federal Reserve could act to temper interest rates, by cutting short term rates again when the committee meets on April 29 and 30.
What that means is that home buyers could be seeing their best interest rates in the next week, if signs of inflation don’t get worse.
Interest rates are currently below six percent. Rising home inventories, and lower prices once again give buyers the trifecta.
Remember to lock in a low rate, you have to apply. Get your approval from the bank and then lock when you think the time is right. For those home buyers who see no light at the end of the tunnel .”
To sum it all up…. ITS A BUYER’S MARKET- SO GET OUT THERE AND BUY!!!
by Blanche Evans from http://realtytimes.com/rtpages/20080418_realtyviewpoint.htm