27Sep2006
Dan Green
Author
Dan Green
Filed Under
Real Estate Sales

Real Estate Buyers Purchasing Power Is Its Highest Since The Super Bowl

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Bird_in_handMortgage rates are down and this week officially marked the open of Refi Season.

If you were paying too much attention to the news, here's what you likely heard:

  • Batten down the hatches!  Housing slump could last years! (Boston Herald)
  • Home prices fall into seven-year ditch (Palm Beach Post)
  • Analyst of new data says: "Pop goes the Housing Bubble" (Associated Press)
  • Serious correction under way in US housing market (The Independent)
  • Housing ills a "weight" on economy (Boston Herald)
  • Sellers Beware:  It's Officially a Buyer's Market (CBS TV)

Combine "low rates" with "slumping housing" and you see that home buyers have more purchasing power than at anytime since the Super Bowl.

Look at the change in buying power with a 30-year fixed mortgage:

  • June 2006: $2,500 buys a $385,000 home
  • September 2006: $2,500 buys a $406,000 home

Or, the change in buying power with a 5-year ARM with interest only payments

  • June 2006: $2,500 buys a $470,500 home
  • September 2006: $2,500 buys a $510,600 home

Amid all of the talk that this is a Buyer's Market, don't get lulled into waiting to buy your new home.  There is good supply out there and mortgage money is cheap. 

That old "bird-in-hand" expression is worth repeating.  Get yours while the going's good.  Wait until next Spring and the party could be over.

Dan Green
Author
Dan Green

About the Author

Dan Green (NMLS #227607) is an active loan officer with Waterstone Mortgage. Email Dan ator call 513-443-2020.

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