Real Estate Market Stabilizes and Gives Best Opportunity to Buy

Over the past few months my inclination was to advise clients not to buy and not to sell unless they had a significant reason why they had to make a real estate change. Prices were very low and sinking so selling was a bad idea and buying meant that in a few months your property would have lost value. With foreclosures hitting the market daily I could not see an end to the rapid down spiral in the local real estate market.

Today my tune has gotten slightly more optimistic. Due in part to extensive lender efforts to forestall foreclosure though loan modification, refinance offers and lease-back options, the foreclosure glut appears to be slowing. Sellers who wanted too much for their homes have pulled them off the market to wait for a better day. What remains is a market with homes that sellers will make a deal on and interest rates that remain enticingly low. Government tax incentives sweeten the deal. It is the perfect meeting in heaven of low property prices, tax credits and low interest rates. It's time to buy baby, buy.

The future hold the potential of rising prices due to govenment tax incentives, the expiration of tax incentives and interest rates rising in an inflationary market. If you are going to move up, downsize or get that second home my crystal ball says go for it!