Real Estate is changing throughout the nation. There have been several positive reports in the news lately concerning real estate nationwide.

It seems that most markets have corrected themselves to a level where buyers are willing to buy. Economists feel that the bottom of the mortgage crisis was reached in April. We will still see foreclosures entering the market but the rate of foreclosures is slowing except in California and Florida.

The newest report on Home Prices In America by Global Insight states that there are only 8 markets remaining that are considered over-valued. Five of these are located in Oregon. The report also indicates that 84% of the nation is priced at true market value or is under-value.

Home sales are up locally, here in Southern Maryland as well as nationally. Prices are stabilizing and many areas are beginning to see values increasing. Inventory is decreasing as well as days on market. In truth, most of the nation remained in a stable market even in the worst of the housing recession.

Interest rates have risen slightly and will most likely continue to do so. The Federal Reserve is holding steady on raising interest rates but is watching inflation closely. The opinion on Wall Street and by economists is that the interest rate will rise about a quarter of a percent between October and December of this year.

What does this mean to you as a buyer?
The market is still in the buyer’s favor as are interest rates but for how long, only time will tell. All indications are that the bottom of the market has been reached and the upswing is in the foreseeable future. If you are a buyer, your opportunity to purchase a home at fair market value and better is here.

Interest rates are still low but have risen steadily since the middle of May. Interest rates affect your purchasing power. Now is the time to talk to a lender regarding your ability to buy a home. Studies show that you should not commit more than 28% of your gross income towards housing costs. Fixed rates better assist you in future financial planning versus adjustable rates.

What does this mean to you as a seller?
You can expect to have your home on the market for a shorter period of time and showings should be increasing. If your phone isn’t ringing, look carefully at your pricing. Sellers still face stiff competition in regards to foreclosure sales which will keep pricing down. Sellers must also consider the locality of their property in regards to work commute times. With the current gas prices, location in relation to a buyer’s workplace is becoming increasingly important. Buyers today are also more green living conscious.  So, if your home reflects green living, be sure to point this out in your marketing information.

What does this mean to you as a homeowner?
If you have been considering refinancing your home for better rates or terms, home improvements or bill consolidation, don’t wait too much longer as interest rates are expected to continue to rise.

No one, including myself, has a crystal ball when it comes to real estate. All any of us can do is look at today’s market conditions and the indicators coming from real estate studies, Wall Street and economists. Today, things are looking good and appear to be getting better each day.

Buyers, if you need assistance in determining your buying power and the neighborhoods which best match your financial needs and your desires in a home, please contact me.

If you are considering placing your home on the market, please contact me for an evaluation of the current fair market value in your area. Real estate values are very localized, changing from neighborhood to neighborhood.