Regional Update

According to Ken Fears every real estate market is unique. Foreclosures are having a substantial impact in some markets, while unemployment is the primary concern in other locations. Prices that have been most resilient in those markets that were last to join the housing boom likethose Texas, Utah, New Mexico adn Oklahoma.

Significant price declines provide potential buyers with the confidence to get in the game and take full advantage of home buying opportunities. From the perspective of a would-be buyer, since large price declines have already occurred, it is less likely that prices will continue to decline at the same pace in the future. Furthermore, over a typical ownership period (seven to nine yaers) prices and homeowner equity are likely to rise.

In the 2004 - 2007 market buyers could qualify for, obviously, a lot more loan then they could afford. There was no documentation and high debt to income ratio loans. The great news now for the stability of the market is that the lenders are not doing no doc loans. Also, the debt to income ratios is way down. For 2008 it was about 28.2% and for 2009 Q1 it was 19.6%.

With the $8000 tax credit,interest rates ranging from 5.0% to 5.375%, as well as the steep decline in home values this is an amazing to to buy a home.