Posts Tagged ‘pete baldwin’
Top Five Reasons Why You Should Invest in a Home in 2011
1) Mortgage Rates Are Still Low- While mortgage rates have been inching up in recent months, economists predict they will remain in the 4% to 5% range for 2011 and perhaps rise above 6% in 2012. Even though these rates are increasing, they are still well below average mortgage rates compared to just a few years ago. This means it can keep your payment relatively low and your loan closing costs as well.
Prediction Made in 2010- Freddie Mac appeared on our housing market predict-o-meter back in October. Here’s another set of predictions, this time from their chief economist Frank Nothaft. This commentary comes from the Freddie Mac blog, where Mr. Nothaft recently shared his thoughts on the type of housing market we’ll see in 2011. He feels that fixed mortgage rates will remain below 5 percent next year, while the 5/1 ARM will remain below 4 percent. He also forecasts a rise in purchase loans and a decline in refis.
2) Lenders Seem to Be Loosening Standards- Lawrence Yun, chief economist for the National Association of Realtors (NAR), says overly tight restrictions on loan approvals have hurt the housing market. NAR has been lobbying lenders to loosen their standards and the expectation is that as the economy improves, credit will become more accessible. Signs are already surfacing showing that lenders are loosening their standards and closing more loans.
3) Scottsdale Inventory is Abundant Yet Moving- Although there is currently a lower inventory in the foreclosure market in Scottsdale, there are still some great buys to be had. The residential market in Scottsdale continues to rise on a price per square foot basis; 2010 was up 8 percent from 2009; The current average price per square foot in North Scottsdale is $180.62. The purchase of second homes and upgrading from other communities to Scottsdale is the reason behind this recent trend throughout 2010. Scottsdalehas always been known for known f its beauty, high end living, shopping and diningand year round desirable whether, hence the increase in second home purchases in our area.
4) Extending the Tax Cuts Could Encourage a More Rapid Recovery for the Economy- Tax cut extension could lead to faster recovery. Some economists are revising their predictions about economic growth and increased employment as the government extends tax cuts and unemployment insurance benefits.
5) There Will Be More Opportunities Available for Cash Buyers and Investors- Real estate investors and others with the funds available for an all-cash purchase have been an increasingly larger pool of buyers in Scottsdale for 2010, and this trend is expected to continue in 2011. These buyers can quickly snap up inventory without waiting for a loan approval, a short sale approval or competing against a less desirable buyer., thus increasing the number of home sales in our individual market.
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