Stability and Affordability: A Perfect Storm of Opportunity for Area Homebuyers
May 06, 2009
Stability and Affordability: A Perfect Storm of Opportunity for Area Homebuyers
"Now is a great time for buyers to take advantage of not only the market stability we have in Houston, but also home affordability," said John A. Daugherty, Jr., president of John Daugherty, Realtors.
"Homeowners are becoming more realistic right now about home pricing", Daugherty explained. "They understand that if a home is priced to the market, it will sell quickly."
While most of the country's real estate market is in less than favorable condition, the Houston area has been nearly immune for several reasons. Houston's strong economy and stable home prices locally and statewide are two factors that have countered the double-digit appreciation that other markets across the country experienced. Buyers also have more choices in Houston than most other cities with steady development of single homes, condominiums, high-rise living units, and lofts.
In addition, Daugherty points out, Houston buyers continue to view real estate as a long-term investment and also noted that most buyers buy for life-style. Statistics from the National Association of Realtors show that the average first-time homebuyer plans to stay in the home for ten years as compared to last year's survey of seven years. Daugherty explained, "Maybe people have become more realistic about how long it takes to earn equity or maybe they have more confidence in real estate assets they can see and feel than other market assets."
Possibly the greatest economic incentive to homebuyers is interest. Mortgage rates are at a 50-year low. There is no crystal ball that tells us what the rates will be this summer or fall, but at the current levels, the rates can only go up.
Another benefit of home buying now is the tax credit. A tax credit of up to $8,000 has been made available for qualified first-time homebuyers who purchase a principal residence on or after January 1, 2009 and before December 1, 2009. And this year, unlike the tax credit enacted in 2008, the new credit does not have to be repaid.
"One phenomenon we are seeing is buyers making very low offers, thinking they will get a "deal" on a property. After they lose out on a few homes, they too get more realistic with their offers and they soon are in the home they want," stated Daugherty.
The affordability, the market stability, the benefits from owning real estate, the incredible interest rates, and even the first time home owner tax credit all result a perfect storm for homebuyers.
Contact a John Daugherty, Realtors sales professional today.
