If you are looking into buying a home, it might be a good idea to hold off for a couple of months if you can. While it is definitely a buyer's market in most areas of the country right now, things could become even better for house hunters in the next couple of months, especially in relation to existing homes. Businessweek reports on the coming housing trends for 2008 and 2009:
The Mortgage Bankers Association forecast that U.S. mortgage lending will fall 16.2 percent this year to $1.96 trillion, down from a projected $2.34 trillion last year.
The group also said sales of previously owned U.S. homes will drop by about 13 percent, while median prices fall about 2 percent. New mortgage lending would continue its downward descent in 2009, the group predicted, but home sales and prices would steady a bit.
This means that if you have good credit, you will be more likely to get better loans terms as well, since mortgage lenders will want to compete for your business.
Carefully plan out when you want to do your homebuying. If you wait until March or April, you may find that the buyer's market is even better than it is now.
Disclaimer: Every housing market is different. Not all markets are in a downturn. Forecasts are not always accurate. Do your own research and/or consult with a professional before making any financial decision.
maybe await a couple of years but the folks buying reos and foreclosures are lining up now. So maybe your prediction of wait 2 months in Jan 08 is correct. It makes sense mortgage rates are low and home prices are 40% off.
Posted by: Adam chandler | May 26, 2008 6:25 PM | Permalink to Comment