| The Perfect Time to Buy?As long as the economy continues to waver, the media will surely continue to sensationalize the recent "downturn" in the US housing market, there is a good amount of research data surfacing which suggest that market conditions are becoming quite favorable, for buyers as well as sellers. It seems as though the market has simply been correcting itself after the "housing boom" earlier in the decade, which was largely rooted in careless borrowing practices by people looking to make quick-turn investments.Early indications in 2008 are that whatever harsh repercussions this "self-correction" in the housing market may have been carrying have now passed. Lawrence Yun, the National Association of Realtors (NAR) chief economist has estimated that "median-existing home price will drop about 1.7% this year. This is a small minor adjustment after a strong run-up in housing prices." This "small minor adjustment" is one of the reasons that make right now an ideal time to buy, particularly for those looking to become first-time homeowners, or anyone willing to make a long-term investment in real estate.Real estate has always been an extremely sound investment option. As a long-term investment, real estate has always appreciated in value. Consider that, right now, 30-year fixed mortgage rates are at a 45 year low- between 6 and 7%. This affords borrowers more home per dollar.In Milwaukee, conditions are particularly favorable. Michael Federer, CEO of Radar Logic Incorporated, the company that the US Department of Housing and Urban Development (HUD) uses as a source for Median Home prices, recently said this: "Despite the continued flow of bad news from the housing markets, several of the cities tracked by RPX are sending positive signals." It would seem that Milwaukee exemplifies this point. Radar Logic reports monthly on the housing markets in 25 major metropolitan areas. In their most recent study, Milwaukee was named as the metropolitan area which showed the largest appreciation in price per square foot over the course of 2007, showing more than twice the percentage increase of the Washington DC area, the city who finished second in the study. Milwaukee has held the top spot in Radar Logic’s monthly surveys three out of the last four months, and was 1 of only 4 metropolitan areas surveyed that actually experienced an increase in 2007.As for the rest of Wisconsin, similar to most “non-urban” areas, indications are also extremely favorable. Though 2007 showed a decline in prices in a staggering percentage of metropolitan areas, the suburban and rural markets seem to remain less affected. Lawrence Yun has reported that recent NAR research showed that nearly half of the country actually experienced a price increase. And while the total number of homes sold in 2007 was down from the previous year, it is still one of the highest years on record, higher than the year 2002, which was at the front end of the housing boom. If all goes according to early projections, 2008 should bring a similar number. |