If you are in the market or considering a purchasing your first home you should consider the economic factors and market conditions. Forecasters are telling us that mortgage rates will continue to fall slightly before stabilizing. We hear regularly that the housing market is at or near the bottom and a turn around is likely to begin later this year. I think most would agree that housing values are depressed. As mortgage rates fall you are able to acquire a mortgage at a very affordable rate.
That means you have a perhaps once in a lifetime (certainly a once in a long-time) opportunity to buy a home at a discount and finance that home at an extremely low interest rate. It’s known as Buying Power and today’s first time buyers have it.
Savvy buyers and investors are taking advantage of this buying opportunity. We are already seeing multiple offers on properties that are priced well or below the market. Take for example a property that sold for 168,000 just 2 years ago. It was recently listed at $137,500 by the lender that foreclosed on the property. There were competing offers. The property needed clean-up and painting totaling approximately $3,500. That’s a $27,000 discount from the market high of 2 years ago (more if you don’t mind painting). Factor a low interest rate on the mortgage and there is additional savings. If you have seen an increase in your earnings in the past 2 years you can factor that in the equation as well. Keep in mind that this is just one example and not the normal discount you should expect in the Metro St. Louis market but I used this one to illustrate the opportunities that are available.
Search the Metro St. Louis MLS database. Tip: look for properties with reduced prices.