So, what's the real estate market really like? Well, if you watch TV and read the paper, you'd think things are really starting to heat up and great times are ahead. I guess the numbers are improving, but from what? Home purchases were up last month, however, the bottom has been so low that if it had fallen any further down it would have been called a total collapse. Still, things are looking better. I love positive news.
The Lafayette area market is holding steady. Homes under contract are up. New listings have slowed down. This should help shore up a mixed bag of prices. There are strong spots and weak spots. The Federal Government's new home tax credit has made a big difference in the lower to mid-priced homes. First time home buyers are taking advantage and the sales are piling up, especially in the $100,000 - $250,000 price range. The jumbo market is very weak, however. Listings over $300,000 are the soft areas. There is a large surplus of homes in that price range.
Interest rates are still a great deal. Rates from 5%-6% for a 30 year loan are a bargain if you can qualify for one. Every loan is scrutinized and examined over and over for approval. This has caused fall-through after fall-through of pending sales. It appears you really have to be able to pay the loan back if you get one. Go figure.
Overall, I'm very positive about real estate. It's been a wonderful investment for the long term. When you review the history of real estate sales, values have risen substantially. Now is the time to get your share of the American Dream. If you can get a loan, that is!
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