There is often conflicting information in the news regarding real estate. As always it is necessary to take a closer look and determine what is really going on in your local market. Standard & Poor's Case Schiller Index in their most recent report showed sales down for November. Keep in mind that these closed sales for November reflect contracts put in place in July-August when the economy definitely felt some extreme volatility. The good news is thatthe number of contracts signed for homes purchased in Queens and Long Island were up 5.2% in December 2011 over December 2010 numbers(per Multiple Listing Service of Long Island)..The affordability index has increased in Queens 3.3% over the past year again because of the combination of adjusting home prices and decades-low interest rates. This signals that purchasing a home or apartment is more affordable than in the past.
It was reported on a recent Today Show segment with Money Magazine that prices will soon reach bottom and then increase 2% over the next year, 3% the next and then 4%in the following year. Buyers who feel confident in their job situation and with their "financial house" in order will want to take advantage of this terrific time to buy. Be sure to check out your credit scores at www.annualcreditreport.com to see sites where you can check for free. Those with credit scores at 760 or above will be able to take advantage of the best interest rates offered.
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A Few Things To Keep In Mind If You Are Selling Your Home In 2012:
Listing your home now rather than waiting for the start of the traditional spring home-buying season could be a smart decision.
On average there are fewer homes for sale in January/February and a house that is priced right and staged well will stand out even more with less competition.
Lenders, home inspectors, movers and other vendors also see a seasonal dip in transactions, which could mean a quicker, easier and possibly cheaper time to buy, sell and move.
Even if you’re not quite ready yet it is a good time to start the conversation with an experienced real estate agent who will guide you as to timing of the sales process, accurate pricing in today’s market and which repairs and preparations of your home would net you the most amount of money for the least cost.
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Real Estate: Three Key Actions to Consider in Today's Market
1: Your Primary Residence – Rent vs. Buy?
For those who are confident in their job and have their personal finances in order now is the time to buy. The combination of home prices reduced drastically from their highs and interest rates hovering near 4% for a 30 year mortgage make this one of the most affordable times to own a home or apartment. Buyers will be surprised to find their monthly payments including tax deductions (not to mention future appreciation of the property) will most likely show buying a property to be the right choice. An article mid October 2011 in the Wall Street Journal entitled It’s Time to Buy That House told readers “It’s an excellent time to buy a house, either to live in for the long term or investment income…Houses aren’t the magic wealth creators they were made out to be during the Bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.
2: Check if you can refinance your current mortgage.
Call a mortgage professional to see if you qualify for refinancing and what the monthly savings will be. If your current rate is at least 1% higher than today’s rates then refinancing would definitely be worthwhile. Consider closing costs and length of time you plan to own the property to fully understand if refinancing makes sense. If you already have an FHA insured mortgage you may be qualified for a special program which will reduce your monthly payments with minimal documentation required. New legislation will be voted on in November to help homeowners refinance whose home values has fallen below their outstanding mortgage.
3: Consider Owning Income Producing Property
As prices on multi-family homes have come down and rental apartments in demand, owning a rental property makes more sense than in years past. This type of asset can help balance your volatile stock portfolio and low-to-no-income producing bank or money market accounts. Speak to a real estate professional so you fully understand what being a landlord entails and how to choose a good investment property.
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