I was quoted from a lender last week a 4.5% interest rate 30 year fixed. I do not remember interest rates being so low for so long. This is a great time to either refinance or purchase a home. http://bit.ly/axLhub

Average interest on a 30-year fixed mortgage fell to an all-time low of 4.69 percent this week, down from 4.75 percent a week ago, reports Freddie Mac.

Although rates have held below 5% the consumer does not seem to be taking advantage of the low interest rates they seem to be concerned about employment and the current economy.

We know that timing is everything so we try to make the right decision based on our knowledge or talking to financial advisers. Few rely on their real estate broker for advice when thinking about making that important investment in a home.

Here is some food for thought, I have never seen home price as low as they are now or interest rates. Will homes continue to drop? For the rest of 2010 home prices will continue to drop however if you are planning on financing the low interest rates will make a big difference in the monthly mortgage payment.

When buying a home we must keep in mind that most families will live in their home for an average of five years. The home owner will rarely live in their home long enough to pay the mortgage off. So what really needs to be in front of your mind when investing? The answer is will you be able to sell your home for more than you purchased it for three to five years later.

Most of the economists feel that residential real estate recovery will be in 2 ½ years. So the answer would appear to be yes your home will be worth more and you have enjoyed a very comfortable monthly payment.

Areas in North Carolina like Asheville Homes or Waynesville Real Estate seem to be much stronger market than many other areas.

So what is the answer? A good friend of mine told me it is hard to when the Lottery if you do not buy a ticket.  

New home starts are down it may not be because the consumer does not want to build but because it is a stronger investment to buy an existing home. I believe this will continue to be the trend for some time.

Home size continues to decline and the buyers increasingly opt for single story homes. The average home size is 2438 sq ft; last year was over 2500 sq ft. This does not actually bring the cost of building down as the smaller the square foot to more expensive it will become in most cases.

Waynesville real estate for existing homes continue to be strong as well as Asheville homes. 

There has not been a better time to buy an existing home plus the interest rates are still an all time low.    

Those builders that are still in business and the developments that still have plenty of vacant land to build on will still need to wait for another year or two I believe and once the banking industry stops being so difficult we will start seeing a positive up-swing in new homes. http://bit.ly/bHKYmI

Home sales figures indicate that everything is looking better. Sales have increased over the same time last year from 7% to 21% in past months. The figures are also telling us that in some areas home prices are stabilizing and in some cases increased. But one of the most recent articles I read said it will not be until 2013 before real estate market turns around.

So what the heck will it be another two and a half years before we see real estate getting better? Home sales figures in past months are inflated because of the tax credit. Over 40% of home sales are because of the tax credit and we will still see these inflated numbers through June and perhaps July.

I believe that each market will dictate its own future. Areas like Florida where home sales figures went through the roof years ago will take longer to turn around but are already seeing some positive swings in increased sales. Asheville homes and areas like Waynesville real estate that did not have as crazy inflation in years past will see a faster turnaround and are currently seeing more activity.

The good news for Buyers is that home prices are at an all time low, interest rates are the lowest they have been all year and banks are lending.

Because new construction has almost stopped within the next two years we could see a shortage of homes and this will start a big swing in building that will put a lot of people back to work and home prices will start increasing at a faster pace.

Well years ago when the stock market started having its problems I asked my broker what I should do? He said George I do not know! I must admit I do not know how fast it will turn around and frankly I do not believe the experts know either but I do know that it needs to be a slow process to have a lasting impact.

We must keep in mind if the experts are right and real estate will not be turned around until 2013 the process needs to start at a point long before that date and I believe it has.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.
http://www.realtor.org/press_room/news_releases/2010/05/ehs_april

A growing number of areas are experiencing price gains from a year ago, while most states have seen healthy gains in home sales from the first quarter of 2009, according to the latest survey by the National Association of REALTORS®.

In the first quarter, 91 out of 152 metropolitan statistical areas¹ showed higher median existing single-family home prices in comparison with the first quarter of 2009, including 29 with double-digit increases; three were unchanged and 58 metros had price declines. In the fourth quarter 67 areas reported gains and 123 were down, while only 30 MSAs in third quarter of 2009 showed annual price increases.

The national median existing single-family price was fairly flat at $166,100, down 0.7 percent from the first quarter 2009 price of $167,300. The median is where half sold for more and half sold for less. Distressed homes, which typically are discounted by 15 percent relative to traditional homes, accounted for 36 percent of first quarter sales. http://www.realtor.org/press_room/news_releases/2010/05/metro_rise

Asheville and Waynesville area ranks high on the list to live as well. As real estate home sales continue to increase home prices are still at an all time low. Waynesville home sales seem to be following the national averages.

The general feeling is the increase in home sales will continue and as inventor decreases prices will stabilize and will start to increase. There has never been a better time to purchase home. http://bit.ly/di3LbA

Under rules released this month that will take effect in July, some troubled borrowers who give up their homes by voluntarily transferring ownership through a "deed in lieu of foreclosure" or by completing a short sale, where a home is sold for less than the amount owed, will be eligible in two years to apply for a new mortgage backed by Fannie. http://bit.ly/d7i0mK

I believe the biggest reason is because banks are working with their Clients trying to stay out of ownership or foreclosure. The new Short Sale Rules that became effective April 5^th is a good indication that lenders want to work with home owners. My understanding is over 95% of the mortgage lenders have signed up. http://bit.ly/aikvkj

As Congress considers various ways to put FHA on sounder financial footing, FHA Commissioner David Stevens warned that now is not the time to raise the down payment requirement on a Federal Housing Administration loan.

Congress has been considering various ways to put FHA on a sounder financial footing. Besides increasing the down payment requirement, another suggestion under discussion is raising the upfront mortgage insurance premium to 2.25 percent of the loan amount, up from 1.75 percent currently.
http://bit.ly/98BHUL