Buyer Who Wait May Lose A Lot

A recent article I read in Realtor Magazine said that buyers waiting to buy a home for better opportunities may end up missing the boat. Based on a number of factors here in the Greater Jackson metropolitan area I agree. The article, which is linked above, states a number of factors.

One is the April 30th deadline on tax credits and the very distinct possibility of rising interest rates because the Fed is stopping the purchase of mortgage-backed securities. Another factor stated is the rising of home prices in 30% of the markets while only 12% of the markets are still experiencing falling prices. Here locally in Madison, Rankin, and Hinds County the supply of homes on the market is down considerably from a year ago and if that trend continues our supply and demand locally should begin to balance out in the not to distant future. In fact in some price ranges supply is balanced with demand.

In another article I read Warren Buffett  predicted the real estate market downturn would be over by 2011. That is only 10 months away. If so, we should be on the way to getting out of this mess. Another article in the Madison County Journal quoted tax Assessor Gerald Barber as saying, the dramatic rise on mortgage defaults in Madison County in 2009 (up 22% over 2008) were mostly failed commercial ventures or new home developers saddled with empty lots. Actual individual homeowner defaults actually went down in 2009. I though that was very interesting.

In the Jackson MS area inventory levels of homes on the market have been trending down for well more than a year. I don't know if demand will go up in 2010, but I do know the selection of homes to choose from is getting tighter.   

    

By: Mark Warren | In: Metro Real Estate | Comments: 0 | On: 03/02/2010 16:03:11

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