Oh stop already! We all have been sorely mislead by all the gossip that the current real estate market overshadowing forecasts gloom and doom trends.  There is no denying the housing market hit the proverbial brakes this summer. The smart home buyers, however knew the doomsayers were concluding an immature analysis of the buyer’s market.  Through this article, we at Team Panella set out to nurture a new breed of buyer.  Armed with the REAL insight to national and Louisville market trends, you will recognize with eagle-sighted accuracy, a fantastic, opportunity just begging for someone to take the advantage.  Yes, contrary to popular belief, NOW really is the  time to buy a home in Louisville!

1  Homes have never been more affordable

 For individual home buyers, there are only a few facts that really matter:

• Can I afford this home?  • Is it a good investment?  • Does it meet my family’s needs?

The Truth:  Home affordability is at a generational best now.  Why aren’t “they” reporting on this?  The fact is, an in-depth study of the market’s track record in the past 10 years, indicated today’s trends to be an abundant improvement, even when compared to the prominence of the 2006 real estate boom.

2  Mortgage rates are at rock bottom but they won’t stay there forever

As with all things, “this too shall pass”.  The October 2010 average 30-year fixed-rate mortgage rate is a record low at 4.36 percent.  That is the past half-century’s best mortgage rate deal!  WOW!  This should be a huge motivating factor.

 3  (GASP!) Home prices are back on the rise!

Stop holding your breath and take a breath of fresh air!  News flash to all the "wait-and-see" buyers out there:  After a 30 month decline in values, home prices appear to be stable or appreciating in nearly every U.S. market.  What does that mean for you?  Frankly, it means the time is NOW:  Get off the fence and into a house because this is it! 

4  Sellers are motivated!

This is our basic Supply vs Demand, Economics 101 model.  Excess inventory creates fierce competition among sellers.  Buyers have vast numbers from which to choose and extra negotiating power.   Sellers are catering to the buyers by competing in a “price-war / beauty contest”.  A double-winner means a successful sale and purchase of a home.  This also creates a win/win for both the buyer and seller:  the buyer gets a great deal on their investment and the seller is able to sell quickly without incurring continued carry-over expenses from extended days on the market.  Buyers, this is YOUR Day…Seize it!

5  Lenders are back in the game!

Financing is readily available to well-qualified buyers.  The sub-prime mortgage crisis brought underwriting standards back into the mortgage origination process.  Upon further analysis, we see the recent drop in jumbo mortgage loan rates and an up-tick in the high-end of the housing market.  This sector was not bolstered by the $8,000 first-time home buyer tax credit, and is faring quite well, providing further evidence that the recent sales setback is simply a function of the market readjusting to the expiration of the tax credit.

6  Ownership costs are dropping below rental costs!

Since 2009, the average principal and interest payment fell below the average rental rates, and the gap is now wider than it’s been in the past 22 years.

7  Home ownership remains at the core of the American Dream!

Owning a home is critical to financial stability and wealth building. It’s an investment account and a place to live all rolled into one!  Another key factor in the affordability picture is the federal tax deductibility of mortgage interest, which amounts to an annual savings of thousands of dollars for the average homeowner.

Savvy Home Buyer Summary:

When the housing market was red hot, properties were snatched up the second they hit the market.  As supply vs. demand predicates, prices driven up, Up, UP!  Such notable fanfare made for an “exciting” time to buy a home. However, the bubble burst (of course!), cooling the market.  Housing moved from uncertain to secure, from volatile to sensible, from a place to flip to a place to live.  A far better option by any measure for the smart buyer who knows how to recognize an opportunity when they see one!

Now is the time to buy a home!

Opportunity is knocking.  When you are ready to answer the door and take advantage of the best deal this past half century has seen, we are here for you!  Call Team Panella at 502.371.1169 to make the first steps toward homeownership.  Taking action NOW positions you to benefit from the current market’s status for years to come!