Why Buy Now, in August 2010?
- The Economy has Turned Around
- 07/26/10: U.S. sales of new homes rose 23.6% in June to a seasonally adjusted rate of 330,000 as reported by the Commerce Department.
- 04/02/10: The job market brightens as U.S. Payrolls surge in March. Employment levels achieve the biggest gain in 3 years.
- 01/29/10: GDP up 5.7%. In the fourth quarter of 2009 the U.S. economy grew at the fastest rate in 6 years, led by an increase in capital spending.
- 10/27/09 Home Prices: The S&P/Case-Shiller home-price index rose for the fourth straight month.
- 10/19/09 The stock market is at a 12-month high. The S&P 500 Index is up 62% and the Dow Jones Industrial Average is up 54% since the March 2009 lows. The S&P Homebuilders ETF (“XHB”) is up 88% over the same period.
- 9/15/09 Fed Chairman Bernanke declares that the recession is “very likely over.”
- Mortgage Rates are at Historic Lows
06/24/10: Mortgage rates hit a record low in a Freddie Mac Survey: 4.69% for a 30-year fixed rate mortgage.
- It’s a Buyer’s Market in Florida
Bargains are available at substantially lower prices than a year or two ago. We believe that the real estate market has found a bottom and the market will improve, although slowly. California and Florida may be the first to recover since they were the first to experience large declines. Already in California multiple bidders are pursuing properties at today’s lower prices.
Kiplinger: 5 Reasons to Buy a Home Now
New York Times: Where Prices Crashed Early, Signs of a Rebound
USA Today: More Homes get Multiple Offers