Good news arrived recently for home buyers as the US Treasury Department stepped in and agreed to take over control of stumbling Freddie Mac and Fannie Mae.  According to The Federal Housing Finance Agency, nearly 80% of all residential purchases have a connection to these companies in a secondary market.  In a nutshell, the capability of selling mortgage loans in the secondary market allows banks and lenders to provide buyers access to necessary funds to purchase a property.  Rates for 30 year fixed loans have improved and the outlook is more optimistic for availability of money for home purchases.  Now that you know that money will be available to purchase, does it make sense to buy a home now?

Make no mistake, this is a great time to buy, especially in the 500K+ price range where there is plenty of inventory and current buyer demand has slightly increased compared to the same time period last year.  As you would expect, moving higher in price reduces the quantity of buyers where luxury home inventory levels are out of balance in favor of the buyer, even more so as you approach the million dollar mark and beyond.  Informed buyers should research the incredible values of resale homes or completed new construction homes before meeting with an architect to start from scratch.  What they will find is they may move into a home that has more amenities than what they can build or they will save a substantial amount of money.   

In my opinion, new construction home inventory levels will drop through 2009 in Carmel and Fishers due to the lack of new construction starts for builder speculative homes.  Many homes, especially those up the price scale, require 8 months to 1 year to complete.  We monitor current housing starts and predict that there will be less new construction supply over this time period.  What this means in the future for the buyer is a more balanced position between seller and buyer, thus, the leverage that the buyer has now will be reduced due to a drop in inventory.  Basically, there will be more pricing stability for builders through next year.  Take a good look at what is available on the market and don’t lose your opportunity.  It is a great time to buy.

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