Housing Trends for Fall 2011
According to Bankrate.com, there are a few housing trends that we should expect to see this fall. What’s on the list? Well, no surprise but mortgage rates and foreclosures or distressed properties made the top.
Mortgage Rates Still Look Good
Everyone has been talking about mortgage rates. Mortgage rates this and mortgage rates that. They are at a historic low, but that won’t always be the case. When the economy starts picking up, there will be a bump in mortgage rates. But that doesn’t appear to be for a long time. It looks like the fall season will still be a great time, if you qualify under the new lending requirements, to buy a home. See what rates you can qualify for on Homes.com mortgage center!
Foreclose Your Home & Become a Renter
For homeowners who lose their home to foreclosures, renting is the only option. Investors are starting to see that foreclosed homes can become rentals to those individuals who aren’t able to buy a home, especially due to the tight lending requirements. “Investors can buy with low interest rates (and) low prices, and rent that property out,” says Shaun White, a vice president for the RE/MAX real estate network. “The dollars work out. In a few years when prices appreciate, they can consider selling the properties. In the meantime they are providing affordable living to people.”
Loan Limits Push Home Values Down
This is not news a home owner wants to hear; but with the recent adjustments in the loan limits, reducing the maximum loan amount in high-cost areas to $625,500 and, in some areas, to $550,000 from $729,750, loan limits can hurt home values. The home values in high-priced markets will be hit the hardest, but they won’t be the only markets affected. And if you are looking to sell, you may be forced to reduce the asking price on your home, so that the price is within the new limits to attract a broader group of buyers.
It isn’t all bad news for real estate this fall. If you’re a buyer who can qualify for a mortgage then this is your time. Mortgage rates are historically low and home prices are declining with the distressed properties hitting the market, offering you a once-in-a-lifetime opportunity!
Click to view more housing trends for fall.