THREE THINGS YOU NEED TO KNOW ABOUT THE MARKET

Inventory: Even though there seem to be many properties on the market right now (and there are), that doesn't mean that the "good" ones last very long. Strong properties priced well continue to move quickly so watch inventory closely and work with your broker so you don't miss the good ones.

Mortgage Meltdown? There certainly is a media feeding frenzy on this topic. You are going to see a return to basics here, with more emphasis on fixed-rate mortgages and on programs like FHA instead of some of the "loan products" that have gotten some people in trouble. Don't buy into the panic; work with a solid, reputable and local mortgage professional and buy with confidence while rates are low.

New Construction: With more "built" inventory available and with the cost of construction having increased steadily over the past year, it's no surprise that this market segment continues its retreat. If you're shopping for something brand new you may be able to negotiate quite well on your purchase. On the other hand, rare or unique-value properties like custom green homes will certainly hold their own.

The Bottom Line: Buyers who need a home should not dawdle when a good, well priced property hits the market. Investors can make some excellent moves, especially with multi-family properties, starting right now. Interest rates continue to be very good for qualified buyers. Sellers who want their properties to move in the next 60 days really need to take a hard look at the competition in the marketplace, and price their homes accordingly. Inventories will likely continue to swell this winter so sellers who can be aggressive now, should be.

THE CONTROVERSY ON PURCHASING A HOME IN TODAY'S MARKET

The National Association of REALTORS® has released a series of talking points in response to the remarks of CNBC's Jim Cramer, who last week told viewers of the Today show, "Don't you dare buy a home now. You will lose money."
NAR Responds to Jim Cramer on the Today Show
September 28, 2007—Today, 2007 NAR First Vice President Charles McMillan faced off with Jim Cramer on NBC’s Today Show, countering Cramer’s earlier irresponsible statement on the show telling consumers NOT to buy a house right now. Cramer would treat homes like stock purchases, and McMillan was there to tell him and consumers across the country that housing is not a day-trading activity – it’s a good, solid long-term investment that has proven its value over time. McMillan spoke for Realtors® everywhere as he countered misconceptions about the real estate market and drove home positive messages about the value of homeownership.
What’s Happening Now
~ Housing is a good long-term investment – it’s not a day-trading activity. ~ Owning a home isn’t just about investment, although that’s certainly important. It’s also about building community, a place of your own, and having a part of the American Dream. ~ Homes are not stocks. Most people stay in their home for about 6 years – they buy for the long haul to create a home for their family, not to buy then turn around and sell six months later. ~ It’s impossible to time any market. Right now, interest rates are favorable and buyers have lots of options.
~ For buyers able to qualify for conventional financing, there are ample opportunities in the current market. Conventional loans are available and rates are reasonable, and FHA-insured mortgage applications have been rising as low- and moderate-income buyers seek alternatives to subprime loans. ~ Two-thirds of metropolitan areas across the country are showing modest price gains, and the national median home price in August showed a slight increase. Some examples of markets that have shown both increased sales volume and price (you should collect information from your own market and be prepared to talk about specifics in your own area): Beaufort, TX; El Paso, TX; Farmington, NM; Salem, OR; Salt Lake City, UT; Spokane, WA. ~ The average homeowner has seen an increase of 50 percent in value over the past five years. We project prices to rise about 2 percent next year, and in coming years, average home price appreciation should return to historical averages, around 6 percent. ~ Realtors® are passionate about helping people into homes and expanding homeownership opportunities. Realtors® live where they work and can see the benefits of homeownership firsthand.