Every month Keller Williams performs an in-depth analysis of the Real Estate Market. May 2009 was a critical month in Real Estate especially with home prices falling to 2003 level and the first signs of the market bottom are in play. This presentation looks at the National Real Estate Market. If you are interested in our South Walton market or specific areas including Grayton Beach, Seagrove Beach, Destin, Sandestin, Rosemary Beach, WaterColor or WaterSound, please call or email Craig or Tracy @ Team Baranowski 850.259.1788 or 850.259.4270.
Housing Market Offers Opportunities, Glimmers of Hope
Buying opportunities abound for value-savvy home shoppers in select markets across the nation, where prices have fallen to 2003 levels. While home prices are still declining on a year over year basis, they are falling at the slowest rate in five months, which indicates a degree of stabilization compared to recent months.
Attractive prices, coupled with strong affordability and mortgage rates below 5%, translate to more buying power for home buyers. Buoyed by the $8,000 federal tax incentive, first-time buyers represented the majority of transactions closed last month. Their activity is expected to remain high and reduce the glut of homes on the market.
According to Charles McMillan, “Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment. For buyers who’ve been on the sidelines and have good jobs, the market has never looked more favorable. Home ownership has always offered immediate benefits and long-term value, but the advantages in today’s market are unique.”
Another positive factor is the return of the jumbo loan. For nearly a year, it has been almost impossible for buyers to find financing for homes selling for more than $417,000. Bank of America recently began offering a 30-year fixed rate jumbo at less than 6 percent. Other banks are starting to follow suit.
Home sales and other consumer spending data combined with big earnings at some banks indicate that the U.S. economy is on the road to a gradual recovery this year. “The economy is still very weak, but there are some encouraging signs that support cautious optimism,” said Dennis Lockhart, president of the Federal Reserve Bank of Atlanta.
Click here to download complete report: This Month in Real Estate, May 2009
If you are considering buying or selling a luxury beach home, put the Team Baranowski advantage to work for you. If you have questions, our team is always available – 850.259.1788 or 850.259.4270. If you are interested in distressed property including short sales and foreclosures click here.