The real estate market in St. Louis combined with the low interest rates of FHA mortgage makes buying your next new 
home, especially if you are a first time home buyer, an opportunity of a lifetime!
Financial wizard Warren Buffet says; “A simple rule dictates my buying: be fearful when others are greedy and be greedy when others are fearful.” While Mr. Buffet was speaking about buying stocks, the same can be said for housing today, because isn’t our home one of the biggest investment most of us will ever make?
Housing issues have permeated the economy both locally and especially nationally. This week, one index that tracks housing prices, S&P/Case-Shiller Home Price Indices, indicated home values fell the most since 1968, declining nationally 18.5% in December from the year before. Here in the St. Louis area we have not seen home prices fall quite that fall.
Looked at a bit differently, this means home prices have fallen to levels not seen in real estate in six to twelve years, depending on individual markets houses are on sale. Following the Case-Schiller report was the report from the National Association of Realtors (NAR). The NAR reported that home prices for the month of January 2009 fell by 14.8%.
The bright spot though is in contrast these two reports, the number of homes sold in December increased! Home buyers from coast to coast, and here in St. Louis, have been buying distressed, priced reduced, foreclosures, short sales, properties at the rate of 45% of total home sales.
Recognizing that NOW is the time to buy, every one – from those looking to purchase their first home to seasoned real estate investors – are buying homes today.
——————————————————–
Fundamentals Point to Strength
——————————————————–
The basic fundamentals of the real estate market point to higher prices ahead. A large portion of the properties being sold today are existing homes that are either owned by banks or homes on which banks are accepting short sales, allowing them to be sold for less than what they are owed.
New homes are not being built and new homes are at a near all time low. The local demographics point to more potential buyers coming into the real estate market than projected inventory in the coming year. This all points to higher prices on the near horizon as demand will be greater than supply. This is supported by the fact that the inventory of unsold homes fell 2.7% in January.
——————————————————–
Why Buy Now?
——————————————————–
There are four very important reasons to buy now:
-
Interest rates are near all time lows, especially FHA mortgage interest rates
-
Home prices have declined to levels not seen in years
-
Qualified first time home buyers are now eligible for up to an $8,000 tax credit
-
House payments are less than rent payments
——————————————————–
Lower Prices Don’t Always Equal Lower Payments
——————————————————–
One final point to consider. Even if you believe that home prices will continue to decline, it is very difficult to believe that interest rates will remain at these low levels. Over the last 45 years the average interest rate is just below 9%, and though we have been well below average for awhile now; eventually rates will return to normal levels.
Did you know that even if home prices were to decline another 10% but during that decline interest rates for mortgages were to increase by 1.00%, your monthly mortgage payment would actually be higher? It’s true! If you are thinking of buying or the end of your lease is near, get busy and get in the game. To quote Mr. Buffet once more; “If you wait for the robins, spring will be over.’
——————————————————–
Call Me To Discuss Your Best Option
——————————————————–
Consider FHA mortgage financing for your next new home purchase, with interest rates still at all time lows one of the lowest down payment requirements, and absolutely the easiest qualification guidelines available FHA is putting people just like you into a new home. I have been helping home buyers with little to no down payment and low credit scores get into a new home, I can do the same for you. Today, you can buy your next new home and get a house payment for less than it would cost to rent a home. Call me today for a no obligation pre-approval, start you house search tomorrow!
Bob Rutledge
Midwest Mortgage Capital
314-744-7843 or 314-913-9678
www.bobrutledge.com
