An Opportunity of a Lifetime

"A simple rule dictates my buying: Be fearful when others are
greedy, and be greedy when others are fearful." - Warren Buffet

While Mr. Buffet was writing about buying stocks, the same can
be said for housing today.

This week, one index that tracks housing prices, S&P/Case-
Shiller Home Price Indices, indicated home values fell the most
since 1968, declining 18.5% in December from the prior year.
This means home prices have fallen to levels not seen in 6 - 12
years, depending on individual markets. The bright spot, in
contrast, was that the number of homes sold in December
increased. Home buyers have been buying distressed properties
at the rate of 45% of total sales.

The basic fundamentals of the housing market point to higher
prices ahead. Almost half of the properties being sold today are
existing homes that are either owned by banks or homes on
which banks are accepting short sales, allowing them to be sold
for less than what is owed.

New homes or homes under construction are near all-time
lows. The country's demographics point to more potential buyers
coming into the housing market than projected inventory in
coming years. This all points to higher prices on the horizon as
demand will be greater than supply. This is supported by the fact
that the inventory of unsold homes fell 2.7% in January.

Three very important reasons to buy now are:

• Interest rates are near all-time lows;

• Home prices have declined to levels not seen in years;

• Qualified first-time home buyers are now eligible for up to an
$8,000 tax credit.

One final point to consider. Even if you believe that home
prices will continue to decline, it's very difficult to believe that
interest rates will remain at these low levels. Did you know that
even if home prices were to decline 10% but also during that time,
interest rates available for home loans were to increase by
1%, your monthly payment would actually be higher?

So, if you are thinking of buying, now is the time to act!

~ Courtesy of Wendy Charles, CMPS, LoanCentral LLC