The Time to Buy a Home IS Now

What a year it’s been. We’ve seen oil prices skyrocket to over $4/gallon with predictions of heading to over $7/gallon and then drop back to their current lows of under $2 per gallon. We witnessed a tough primary fight in the democratic primary followed by an historic election. The housing industry has experienced the worst slump since the great depression and the U.S. auto industry began falling apart.

However, all the doom and gloom we’ve experienced over the past year is beginning to be overshadowed with hope and promise as we approach 2009. A controversial $700 billion bailout of the financial industries was approved, the Federal Reserve cut its benchmark federal funds rate to a record low of 0 to .25% this past week, and the auto industry received an even more controversial lifeline to the tune of $17.4 billion. A major bill to assist first-time homebuyers was signed in July 2008. And this week we’ve watched mortgage rates continue to drop.

The local economy and housing market in Ithaca and Tompkins County have weathered the financial turmoil. According to an article by Elia Kacapyr in the 12/20/2008 issue of The Ithaca Journal, holiday retail sales in Tompkins County are predicted to be about 3.2% higher than 2007 based on the fact that retail sales are running about 3.2% ahead of last year’s pace through October. The drop in mortgage rates at some of the local Ithaca lending institutions this past week to under 5% will continue to spur the local housing market and economy as we enter 2009.

With the low mortgage rates, local median home prices still under $180,000, and most of the financial crisis beginning to appear in the rear-view mirror now IS the perfect time to consider buying a home or moving up. Don't miss the opportunity...contact Dennis today via email or call (607) 227-6422 for more information on becoming a homeowner or to assist with all your real estate needs.

http://www.ithaca-homes.com/

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October Home Sales in Tompkins County and Ithaca, NY

As Franklin Roosevelt once said, “The only thing to fear is fear itself.” And it is fear that often leads to procrastination or as Mark Twain once said, “Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do.” Even though the national media has portrayed doom and gloom, the local housing market in Tompkins County and Ithaca, NY has maintained a steady pace. In fact, the local statistics for the month of October 2008 actually show an improvement. The average residential selling price is the highest reported for an October since 2003 and one of the highest reported in any given month since 2003. The average median selling price is also the highest for any October since 2003. It is still a buyer’s market, but waiting for the cyclical bottom may provide short term gains for homebuyers and at the same time there is also the risk of remaining on the sidelines too long.




Looking closer, we notice the number of closed sales the same as last October but the total dollar volume to be above average for the month although the average yearly total dollar volume is down about 6% since last year. These numbers indicate that more higher end homes are being sold. People moving up would be the typical buyer for these types of homes. Therefore, we can assume that current homeowners realize this is a good time to buy, are not showing fear, and are taking advantage of the local market.


According to the National Association of REALTORS®, homeowners who bought 6 years ago have seen the value of their homes rise on average 24.3% during that time despite recent price declines. In a recent survey of leading economists, 8 out of 10 believe home prices will increase over the next five years. The economists surveyed also agreed by better than 5 to 1 with the statement “A person can increase their long-term wealth by purchasing a house rather than renting.”

It may be too early to tell if the local market stats for October are the beginning of an upward trend. Although I don’t wear rose-colored glasses, the fact that it did not follow the downward trend that some markets took is a good indication at this point that this is the beginning of an upward trend in the local housing market. Historically, home prices have always increased and proven to be one of the better investments.

If you’ve been thinking of buying for the first-time or moving up but nervousness has been causing you to procrastinate, maybe it is time to begin discussing your situation with a REALTOR®, stop fearing, and start doing so that 20 years from now you won’t be disappointed.

*Charts developed by Herbert Dwyer, Warren Real Estate and the data relating to real estate sales comes from the Ithaca Board of REALTORS® Multiple Listing Service. Information deemed reliable but not guaranteed.


Contact Dennis via email or call (607) 227-6422 for more information on becoming a homeowner or to assist with your real estate needs.

http://www.ithaca-homes.com/

Read more!