I caught this clip on Fox and wanted to share it. Dave Ramsey discusses the national housing market, and looks at interesting national housing and foreclosure statistics. Despite being barraged with bad news, particularly housing news as of the past three years, there are some interesting postives.
The affordabillity index of homes (comparing average income to median home price and current interest rates) indicates that there really has not been a better time to buy in the past 30 years. I must add that this does not mean it is the best time for EVERYBODY to buy, it just means that if a potential buyer has a stable job, steady income, and has been afraid to make a move due to news overload, this really may be the right time.
The foreclosure news, which seems to be reported on an hourly basis, is skewed. In reality, there are only a few areas of the country that are hard hit, and in many parts of the country, there is little change in foreclosure numbers. Arizona, California, Las Vegas Nevada, Detroit Michigan and yes, our good ole Florida, are definately hard hit areas, and we will see light, but it may be a while longer before inventory normailizes. Buyers are in the driver’s seat here, but homes are selling folks! Many bank-owned homes are multiple offer situations within days of hitting the MLS!
In the end, the savvy buyer and investor make their moves opposite of the masses. The masses feel fear right now, the savvy buyer sees opportunity. Opportunity with home prices, strong negotiating postiions, very positive affordability indexes, $8000 government tax credits to first time buyers, etc. It may not be the best time for everybody to buy, but it may be the best time for you!