Unless you have lived in a cave, in which case you may be in the market for a new home, you have heard the news…real estate prices have finally bottomed out. It took a few years and a breath taking 35% decline on average across the country for us to find the bottom. But, it appears to be here in earnest, except for a few areas where prices were so over valued ( think Reno, Atlanta, Mobile, Seattle…) that they are still struggling to find their footing, even after some have lost as much as 55% of their values. But, this past Spring and Summer have seen consistent price increases in the majority of metropolitan areas and some are even starting to see price jumps as the inventory for homes is still considered lower than normal.
Add to that the historically low interest rates that are slowly creeping down below 3.5% and you have a magic formula for home buying to rebound. The only caveat being whether the banks are willing to loan the money. If your credit was not dinged in the financial melt down a few years ago due to job loss or other calamities, and you have paid your bills on time consistently, you are probably in pretty good shape to look at a home for purchase. But, you better start planning because it is becoming a sellers market in many areas ( meaning sellers can ask for higher prices due to demand). But, if your credit score is much below 700 you are going to find fewer and fewer choices. Banks have dramatically cut back risky lending, so the days of easy financing are over. You probably noticed you aren’t flooded via snail mail for credit card apps, that is becuase of the new reality of credit tightening is here for good. But, it looks like it is a great time to consider purchasing a home at a great price, finally.