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TOP REASONS YOU SHOULDN’T WAIT TO BUY A NEW HOME
1. NEW $8,000 FEDERAL TAX CREDIT
Until Dec. 1, 2009, qualified first-time buyers can receive a tax credit. Learn more at: FederalHousingTaxCredit.com
2. LOW INTEREST RATES
Rates remain at near-record lows; you can lock in a payment that fits your budget.
3. UNBEATABLE INVESTMENT
Even in down markets, over the long term home prices still appreciate more than the stock market.
4. AVAILABLE LOANS
Lenders are still eager to make loans to borrowers with good credit.
5. GREAT SELECTION
With so many homes on the market, you can get the features you want!
6. ENERGY EFFICIENCY
New homes have advanced technology and environmentally-friendly features that can help you save money.
Homeownership is an important part of the American way of life, and there may never be a better time to buy than today. Click here to view the NAHB “Opportunity Knocks for Home Buyers” brochure.
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S&P/Case-Shiller Home Price Statistics
(Updated May 26, 2009)
Introduction
S&P/Case-Shiller, a leading measure of U.S. home prices, released its latest monthly home price statistics on May 26, 2009.
The data tracks national home prices and includes 10-city and 20-city composite home price indexes of major markets. The report compares prices on a year-to-year, quarter-to-quarter and month-to-month basis.
The latest report tracked the difference in home prices between March 2009 and earlier periods.
Pace of Home Prices Slowed in March
The data showed that home price statistics for the 20 metro markets – which represent more than 40 percent of the U.S. population -- recorded an annual decline of 18.7 percent.
This marks the second consecutive month that the 20-market index did not post a record annual decline.
In a press release announcing the data, S&P said: “On a positive note, nine of the MSAs (Metropolitan Statistical Areas) are reporting a relative improvement in year-over-year returns and nine of the 20 metro areas saw an improvement in their monthly returns compared to February.”
While it is still too early to make a definite assessment, this is an encouraging sign that housing may be nearing a bottom.
All Markets are Local
It’s important to remember that all markets are local. This downturn varies considerably from one market to the next.
The Case-Shiller data shows that the cities that posted the largest declines of more than 20 percent – Las Vegas, Los Angeles, Miami, Minneapolis, Phoenix, San Diego, San Francisco and Tampa – were predominantly located in the previous boom markets in California, Florida, Arizona and Nevada.
The major exception is Detroit, which has been hammered by huge job losses in the auto and manufacturing sector.
It should come as no surprise that the once most super-heated housing markets are now experiencing the most serious market corrections.
Foreclosures Hurting Home Values
These are predominantly the same markets that have been hit with the highest foreclosure rates in the nation.
The sales of foreclosed and distressed properties are the leading reason for the continued downward pressure on home prices.
California and Florida alone accounted for nearly half of all foreclosure filings in April, according to RealtyTrac.
To help stem the rising tide of foreclosures, the Administration has instituted a $75 billion plan to ease the situation and to help stabilize home prices.
Housing is a cyclical business. Experience shows that over time home prices will stabilize and then move upward with the next recovery.
A Great Home Buying Opportunity
In the interim, there are plenty of incentives for home buyers to enter today’s housing market. · The economic stimulus law enacted earlier this year contains an $8,000 first-time home buyer tax credit good through November 2009.
The new tax credit, combined with current market conditions, provides an unprecedented opportunity for home buyers.
Mortgage interest rates are under 5 percent – the lowest level in decades.
There is a great selection of homes to choose from.
Home values in many markets are at the lowest level since 2003.
Many builders have inventory that is “move-in ready,” and they may offer upgrades or other incentives to seal the deal.
Likewise, owners of existing homes who are looking to trade-up are ready to bargain.
Add it all up and there may never be another buyer’s market as good as today’s.
Courtesy of NAHB
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