Existing home sales rose by 2.9% in February. This gain is encouraging but a "notable" gain is not expected until the 2nd half of 2008. While the national "median" home price is down from last year, nearly half of the metro areas in the U.S. show median price increases. This is a clear sign of market stabilization.
Interest Rates and Mortgage Programs fueling the increase:
Many buyers are taking advantage of new FHA programs including increased loan limits for both FHA and conventional loans. 30 Year Fixed Rates were down do 5.92% in February from 6.29% last year. The rates did increase from 5.76% in January of 08 to 5.92% in Febrary which is yet another sign of slow and steady market stabilization.
The fence is tipping over:
It has been a great time to buy a home with relatively lower appreciation rates and interest rates at or near all time lows. For whatever reason people sat on the fence to see what would happen with the market while many others took advantages of this buyers market. Signs of the market shifting are beginning to show and if you have been on the fence about buying a home let me assure you that NOW is the best time to buy. With Utah leading the nation in job production we will remain ahead of the nation in housing stabilization. Many people realize that Real Estate is local and we do not face the same problem the majority of the nation did. Once word gets out to the people who do not yet understand this concept, inventory levels in Utah will be consumed. Right now you have more homes to chose from then you will the rest of the year coupled with sellers willing to negotiate and low interest rates. Conditions are right but will not remain this way.
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