Close to ideal

Dated: May 9 2020

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If you were to imagine the ideal time to buy a home, what would the market look like? I would picture (1) a time when interest rates are low, (2) when prices are moving downward, so that the balance of power is trending toward buyers instead of sellers, (3) when competition from other buyers is not a big issue, and (4) when I can find the kind of property that I want to buy.

Would it surprise you to learn that the market right now fits most of these criteria? Interest rates are extremely low right now—in fact, an FHA 30-year fixed is now at a stunning 2.75%. While prices have held steady during the lockdown-induced frozen market, they will be trending downward as the market becomes more active. I’m guessing there will be a drop in the range of 2% - 3% over the coming 12 months. As things re-open and we create the new normal, buyers who return early will notice a marked reduction in buyer competition. Finally, in the short term, the pandemic has reduced an already-low inventory, so there are few properties to choose from right now, but there are still growing families who need a larger place, and older homeowners are still moving into assisted living or downsizing after their children are grown.

If you have been considering buying, and the pandemic has not undercut your financial outlook, right now could be a golden opportunity to turn your homeowner dreams into reality.

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DAVID DUNLAP

As a residential real estate executive with an extensive background in corporate marketing, I am able to apply unusually strong skills in marketing communications, e-marketing, strategic planning and ....

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