Is now the time to buy?

With interest rates at all time lows, home prices falling and inventories flush with bank owned homes, the buyers are starting to come off the sideline and are snapping up well priced properties. We have even started to see multiple offers on properties that are driving the purchase price above the list price in some situations. While we are still a far cry from the frenzied pace of the real estate market in 2005 and 2006, we are seeing an increase in sales activity from what we experienced in late 2008. The downside to the recent sales activities is that most properties being sold are the REO (bank owned) properties and as a result the median home price in the city continues to fall.




While this is not good news for us homeowners living in the city watching our home values slide, it is great news for homebuyers looking to take advantage of the current market conditions to buy their first home. In addition it might be a great time to pick up an investment property and take advantage of buyer incentives offered by financial institiutions trying to sell their foreclosed properties.