People often think of winter as the worst time to put their home on the market for sale. Think again. This year that couldn’t be further from the truth!
The spring selling season generally begins in February, however the reasons to buy a home now are so compelling that buyers are extremely motivated and aggressively seeking out available properties.
Effective November 6, 2009 Congress extended and expanded the homebuyer tax credit to include properties with a purchase contract by April 30, 2010. The new law offers a tax credit for repeat homebuyers, as well as first time homebuyers, resulting in a larger pool of buyers to choose from than before.
Another important economic factor is the interest rates, which at the time of this printing, are below 5% with zero points. Plus, the surprise November job loss of only 11,000 jobs points to an overall easing of the economic crunch.
According to Larry Flick, CEO of Prudential Fox & Roach Realtors there are even more signs that the real estate market is recovering:
Unit sales are surpassing those of last year. More homes went under agreement during the second half of 2009 than the same period in 2008.
Since February 2009, the rate of available housing inventory has been decreasing each month – by as much as 11% in September 2009.
Months Supply of Inventory (MSI) is decreasing. In a balanced market we would expect MSI to be 5 to 6. To date the 2009 figure is 7.6. Compared to an MSI of 11.4 in 2008 and 10.3 in 2007 we appear to be well on our way to a recovery.
All real estate indicators point to our local real estate market continuing to recover and that unit sales will continue to rise because of the extension and expansion of the home buyer tax credit, excellent interest rates and pent up buyer demand.
This article was featured in the Senior Directory, Philadelphia & Surrounding Counties, 10th edition. Call 1-800-955-8510 or visit www.SeniorDirectory.com.