Despite this most recent economic downturn and real estate crisis, owning a home remains a big part of the American Dream. It’s not like we haven’t seen ups and downs before. And we’ve always recovered. The market will recover. In some parts of the nation we are already seeing the signs, such as less inventory and an increase in buyer activity, including multiple offers. Yes! That is not a typo. Multiple offers! This is what happens when you price a home right, but that’s an entirely different discussion for another day.
Windermere Real Estate’s most recent monthly market update for the greater Metro Seattle area shows that in October 2011, standing inventory declined by 6% while pending sales increased by 3%. While we’ve heard time and time again that “now” is the time to buy, now may also be a good time to sell. Of course, the decision to sell in any type of market depends on your individual real estate needs and goals.
As well as a decline in inventory (good for sellers), sales prices in October for single-family homes continued a gradual four-month decline. This indicates an ongoing opportunity for buyers.
A recent article by Quicken Loans discusses The Top 5 Reasons To Buyer A Home in 2012. This article begins by reminding buyers that the American Dream of homeownership is a feasible aspiration in this new year. It also reiterates a point above, which is that the market will indeed make a recovery. It states that the housing market often moves in cycles and while there is some uncertainty among consumers as to when home values will increase, we can be certain that they will.
Quicken’s top five reasons to buy a home this year include:
- Appreciation – “Buying a home now (at the current rates) can almost ensure your home’s appreciation in the future.”
- Property Tax Deductions – “For income tax purposes, real estate property taxes for a vacation home and first home are fully deductible.”
- Preferential Tax Treatment – “If you own your home for more than a year and receive more profit than the allowable exclusion after the sale of your home, the profit will be considered a capital asset.”
- Equity Building – “Equity builders usually select a home loan with a lower interest rate (and a shorter term loan such as a 15-year fixed) to help build equity faster.”
- Pride – “No matter who you are, homeownership is a purchase, commitment, and journey that’s sure to bring you pride.”
To read the complete article, click here.
Happy House Hunting in 2012!