Home builders nationwide report that they have very little confidence or change for the better in the short-term or even further out to medium-term. This should tell us all a lot about the current housing market. Do not buy into any of the media hype trying to tell us that there are positive things in the housing market.
A recent headline saying that new build starts are more then expected is just using words to mask the fact that the new housing market is in the dumps and has been for years and will continue to be for years. If anything positive can be said for the current housing market that would be that prices and interest rates are low so home affordability is at all-time highs!
Many of the media members tried to spin the Housing Market Index into something positive by saying that it was improving two months ago. While it was true it didn’t bother to mention how poor the reading is. For the second straight month the HMI is 15 out of 100! It’s not considered a positive number until it reaches at least 50. Anyone who is trying to tell you the market is recovering or good is flat out wrong. Imagine if you scored 15 out of 100, is there anyway you could really tell your family or friends something positive about it?
Since 2006 the HMI has been under 50 and reflected a strong buyers market for anyone that is considering a new home as opposed to the many great deals currently available with existing homes.
First you had Bernanke saying that interest rates will remain low for another two years and now you have the home builders saying that they don’t expect any changes for years to come. This means that you will have a great buyer opportunity for the next two years. This is fantastic news for anyone that is able to qualify for a mortgage during these difficult times. We may end up seeing a significant increase in VA Home Loans since they are able to qualify for mortgages much easier then civilians that are not eligible for a VA Loan.
This time in history is unique and I’m sure many will wonder why they did not purchase a home during these next couple of years when the variables are so favorable for buyers. If you have any questions about what opportunities may be available to you simply contact a loan officer today and get a free consultation and be prepared to capitalize on the great opportunity of today.