3 signs it's time to buy before the rush

1) The National Association of Realtors (NAR) recently released their 2011 3rd quarter housing report. In the report they showed sales of single family homes, condos, and co-ops increased in every state compared to 3rd quarter of last year,  more specifically, New Jersey was up over 13%.. Full data at http://www.realtor.org/research/research/metroprice

2) Consumer confidence was published today and was better than expected and was up significantly versus a month ago. In fact, it rose the most since 2003. Check out full story at http://www.bloomberg.com/news/2011-11-29/u-s-consumer-confidence-rises-by-most-since-april-03-amid-holiday-season.html

3) Interest rates remain at very competitive rates at close to or at their 52 week lows, these historic lows will not continue into the spring buying season. http://www.mortgagenewsdaily.com/mortgage_rates/

I think it is time to buy. I would also agree that now it is time to list if the property is priced right.

Did you know that most renters do not know they are eligible to buy. Many people think that lenders will not lend to them due to lack of cash to put down. This is simply not the truth. What is important is a good to above average credit score...and about 4% to qualify. This should put you up for an FHA loan.

Another fact renters who think they cannot buy are missing is that in (New Jersey at least) it is taxes and interest rate that will probably affect your monthly payment the most. Thus, given that interest rates are low, if you can find a place where the taxes are acceptable to your budget you should be in business.  Please do not use sites like Zillow as a tax gospel...time and time again sites like these are not always current. Talk to a realtor they can easily provide you that information for free.

With all that talk about moving renters to buyers I will say this. If you have a home and looking for some additional income you might want to consider buying a rental property if you have equity. I think the returns right now are great on residential rental investments. The only concern here is when will the tides turn and bring these renters to buyers.

What will it take to bring buyers out

For the first time in a long time, housing figures are coming in better than expected. The National Association of Home Builders' sentiment index jumped three points this month to 20, its highest reading in over a year. Last week, the Commerce Department said building permits and construction of single-family homes rose in October. The Federal Reserve's fourth-quarter loan survey showed a pickup in demand for mortgage loans.

Hmmm.....low interest rates, low prices, improved housing starts.... Something is a miss. Is there just too much inventory? Is credit too tough right now? The answer is simple...who cares.  If your buying and holding for up to 5 years. Hands down every time I can show that owning is better than renting or just putting your money under your pillow. My biggest worry is as soon as interest jump a little, there will be a mass entrance to the market...the only problem is, I can't predict when that will be...