These days bad economic news seems to be happening so fast that often we overlook some of the more positive trends that may be going on like amazingly low mortgage rates, record-setting affordability, new tax credits,and the exploding home buyers market.
Let’s not kid ourselves, these economic times are among some of the most difficult that have been seen in generations. Consumer confidence is down and that effects everything from local businesses, new development, and of course home buying. Coupled with rising unemployment and it’s just a simple fact that someone won’t be as likely to consider buying a new home if they are afraid of losing their job.
Despite all of those factors, however, there are some genuinely positive developments going on out there.
Housing Affordability
This very well may be what turns the real estate ball around thanks to the recent growing ability of ordinary consumers to afford to buy a home with their existing income – in part largely due to lower than ever mortgage rates. Right now the home affordability equation is at its most favorable point in decades.
In the Idaho real estate market and across the country, more households with median incomes can now afford to buy homes than at any time since the 70’s, when the National Association of Realtors first began its “Housing Affordability Index.” This is doubtlessly thanks in part to rising household incomes and the continuing decline in the prices at which housing is being sold – the Housing Affordability Index currently stands at a record high!
Real Estate Market Turn Around
Nearly every economist you ask will tell you that the biggest obstacle standing in the way of a full real estate recovery is the current surplus of unsold houses in the inventory of many local and national real estate markets. Thankfully, inventories are steadily declining over these past couple of months, and have dropped another 3 percent to the lowest level in more than two years.
The Light is Just Around the Corner!
The home buyers market that has been created over the last year by these trying economic times is actually helping trim down the surplus of unsold houses permeating real estate markets, which may be the harbinger of more stable home prices in the months to come. It is also cutting out alot of the small time real estate agents and smaller real estate offices that could not bear the strain of these thin times, making for a stronger Realtor base in general.
Home Owner Tax Credits
The above factors combined with Congress’s new $8,000 nonrepayable tax credit for new home buyers, who haven’t bought a house during the past three years, and there is the potential to pull hundreds of thousands of potential home buyers into the healing real estate market in the remainder of 2009.
Take these turbulent times in with a deep breath, and know that there is hope just around the corner for the real estate market as a whole – and in the meantime it very well may be the best time in a very long while to get your piece of real estate, as a home buyers market like the one this year is not one likely to be seen again.
Ready to make the move? Contact your Idaho Real Estate Expert Kecia Mortenson and see how her team of Idaho Realtors can help you find homes in Idaho that meet your needs and fulfill your dreams…
