A question frequently asked to me is the question, "IS NOW A GOOD TIME TO BUY A HOME?" Well, over the last 30 to 45 days I have noticed a slight shift in our local market. In particular with the single family and mid size multifamily homes (2 units to 4 units). I have noticed a sense of urgency with purchasing due to low interest rates, reletively low pricing, national headlines by Warren Buffet saying he would purchase thousands of homes and hold them as investments if possible. Then I see what is going on in my backyard. A single family house on Virginia Avenue sells in one day with multiple offers at a price of $179k, a two family on Corning street Beverly sells 20% over asking price with over 10 offers on the first day, a single family home on Arlington Street in North Beverly priced in the $190's gets over 10 offers and sells way over asking price in 2 days.
More Buyers are ready to purchase a home and because lending has become more stringent it has weeded out the pretenders and has produced serious real estate investors.
So why the recent flurry of activity. Articles such as the recent Case Shiller conversation explaining consumer confidence and why housing is making a slight comeback helps. Mortgage rates have been historically low but for how long. Article today about rising rates, this creates a little urgency.
Another article explained that housing prices in 2011 ended at levels last seen in 2002. This could explain a possible bottom to the housing market. In particular to areas of the country that have lower unemployment such as Beverly, Manchester, Salem, Peabody, Marblehead, Swampscott, Hamilton, Wenham, Topsfield, Boxford, etc... We live in a productive area of the country. We are fortunate to live in a great area and our real estate values although have dropped are starting to rebound.
SOO, the answer to the question, "IS NOW A GOOD TIME TO BUY A HOME?" My answer is yes. After talkng to contractors, investors, home owners, retired smart everyday people, they ALL SAY if people can get in the real estate game NOW is a great time jump in and get in the game.