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Is 2012 Your Year to Buy and/or Sell?
...Be an Informed Buyer and Seller
2012 start continues with low interest rates for qualified buyers. Lower interest rates means a bigger buyer pool for sellers. That being said 'qualified' is becoming harder to achieve in part due to an increase in tighter credit mortgage approval requirements.
Government: Guarantee Fee for Taxes: This government law that was signed will increase mortgage rates .25 % for buyers and refinance loans to pay for the payroll tax extension. This is for the next 2 months, and it may continue to be extended. This effects conventional loans, not VA or FHA. The interest rate increase will be for the life of the loan. This fee increase from Fannie Mae and Freddie Mac could impact homebuyers depending on the risk of their loan or location of their home.
Pricing: Most Americans feel now is a good time to buy a home, but those who want to sell are having difficulty finding buyers at desired prices, causing seller sentiment to fall to record lows. The low opinion is causing a wide gap between homebuying and home selling that won't narrow for at least the next five years. *HousingWire. One of the keys for sellers is pricing intelligence - knowing the local market and setting a realistic price point for the fair value of their home.
Research Institute for Housing America clearly shows that Americans across all age groups and demographics are very pro-homeownership. More than 80% of all surveyed feel that now is a good time to buy a home, despite the recession, negative news stories, and economy. To review the report Housing Reputation Report.
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