Letter from the President - Bob Weiss

We may be seeing the best time to buy a house in history…and it looks like the media is finally catching on to that idea.  See the article below, written by Linda Stern and published in the latest edition of Reuters online magazine. 

Those green shoots that optimists keep seeing may be growing in the real estate market – there are some indicators of healthier, more stable activity in housing.

In May, new housing starts jumped 17 percent over the previous month, and there was a 4 percent increase in building permits, too, according to new reports from the Commerce Department.

Housing inventories – the backlog of homes on the market – now stands at close to nine months.  That is still high by historical standards, but lower than the 11-month levels reached at the end of 2007, says ZipRealty.com, a real estate listing and research firm.

But those inventories don’t include the flood of foreclosures likely to hit the market soon.  And with mortgage rates moving up (and they are), it’s premature to believe that housing is poised to bounce back in a hurry.

Nonetheless, it’s a good time for would-be buyers – first-time homebuyers in particular – to start checking out the market. 

Interest rates are still at historic lows but they are rising, buyers should be shopping carefully for their mortgage and locking in if they see a rate they like.  With the first-time homebuyer tax credit offered by the Obama administration, homebuyers that qualify can expect up to an $8,000 tax credit and with the loan programs offered by FHA, they may be able to use a bridge loan for down payment or closing costs and pay that loan back from their 2010 tax refund.  Many states are also offering incentives for first-time homebuyers – buyers should check with a local real estate agent.  

The Prescott area’s housing inventory is a little different than the national average; sales are up 13% and inventory down 5% from last month on site-built homes.  Site-builts are now at a 16-month supply compared to 21-month supply in May of last year, according to the stats of local broker Bradd Thomas.  Foreclosures and short sale levels seem to be staying high – which is just another reason buyers need to get off that fence and into a new home.