I came across this article today on Inman News and NPR had a segment on it as well earlier this morning. I couldn’t help but think that it would mean that for the first time in a long time, those folks who really work hard from 9-5 could actually consider buying a home, and perhaps close to where they work. I have advocated for a while that now is a good time to buy. There is a lot of inventory out there and sellers are willing to negotiate…..at least those who are real sellers. Unless a seller can afford to hold onto their home for a couple of years, they are looking to off-load them now. Otherwise, until a buyer comes along and finds “value” in their property, they will continue to chase the market down.
Dean Baker, co-director of the Center for Economic Policy Research, argues that it’s better to get price declines out of the way than to take measures that only prolong the inevitable. “At the new lower prices, home buyers would be less fearful that there would be a further decline in prices,” Baker said. “This should cause many potential home buyers — who have been waiting for the price decline to stop — to re-enter the market.”
Some fear that lowering mortgage rates will only keep housing prices up, thus untouchable at more affordable rates. I honestly think that at this time, given the other economic factors affecting our country, it will do nothing but keep home prices stable…and this is the least we could ask for.