Housing Market Jump is Good News for Homebuyers

Good news if you are thinking about jumping into the housing market soon…bad news if you plan on waiting the housing market out.  New and existing home prices have made the biggest jump in two years–an even bigger jump if you adjust that number to accommodate the artificial “jump” in home sales and home prices created by the 2010 homebuyer tax credit (part of the recovery act).

Home prices for the third quarter of 2012 jumped 3.6 percent–that’s nearly three times the previous quarter–and unlike the home price jump in 2010, there is nothing artificial about this market. Rock-bottom interest rates on mortgages, inventory demand, and rising consumer confidence are all padding the argument that housing recovery is happening.  Add to that growth in areas of the Northwest such as Central Oregon, which is reporting a steady growth in population, and the lowest foreclosure rate in five years, and you’ve got a formula for housing recovery.

If you have been searching the market for your next home, you may have noticed the lack of inventory and selection. Many homebuyers are dealing with low foreclosure rates, and sellers who are hesitant to put their house on the market in fears they are underwater.  These factors are slowing down the flow of supply, and many homebuyers in the market are finding they can get a new Hayden Home in a great community with all the features and amenities they want by building a new home. After six straight months of month-over-month increases in home prices, fewer foreclosures, record-low interest rates, and less inventory, why compromise getting the home you really want when you can buy a customized new home of your dreams and start building equity today with a new Hayden Home?

So, good news if you are ready to become a homebuyer: “With six months of consistently rising home prices, it is safe to say that we are now in the midst of a recovery in the housing market,” said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.  You can still get in while the getting’s good.  But if you are waiting to take the plunge into buying a new home in hopes of lower prices, more inventory, or lower interest rates, you may be out of luck.  All things (including the housing market) look like they are headed up, up, up!

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