Time to buy y'all!

Here are some examples of who should buy a home this year and why.

Investors

- There will be more foreclosed homes available in our area this year than any time in the recent past. One reason is that banks have been holding a "shadow inventory." They have been very slow to get homes on the market  in the last couple of years and are waiting for the market to come back a little so they can build the values up.  That way they wouldn't lose as much on the homes. This year is the year they are getting those houses out there.

-With more foreclosed homes, competition isn't quite as fierce and your chances of getting a bargain are higher.

-Banks have been pricing homes lower than they did in the recent past because they want to start thinning their inventories.

-The second half of 2010 had a lull in first time home buyers because many of them took advantage of the tax credit going on in the first half of the year. Now they've been slowly building in numbers and will be looking for good valued homes that have been fixed up and move-in ready.

First-Time Home Buyers

- Rates are still super low!

- Home values are holding at a strong affordability ratio in the Sioux Falls area.

- There are TONS of incentives with local governments and banks to help you out with financing your first place.

- Monthly payments on a home are more often than not, LESS than monthly rent. In fact, national average is a little less than 10% less.

- Home sellers have spent time and money getting their homes in great showing condition so they shine to potential buyers.

- Home sellers have experienced a small gain in value of their homes over last year, but are still keeping their pricing VERY competitive.

- Coming off of a 2nd half 2010 lull in entry level homes and winter, now there are more great homes than ever to shop!

Home Sellers / Move-Up Buyers

- We should see a bounce back in the number of first-time home buyers from the 2nd half 2010 lull we had.

- Even if your home isn't an entry level home, you will see a chain of buyers building in most every home price range.

- Rates are still good.

- Entry level homes in our area have had some minor appreciation due to the tax credit buyers of the 1st half of 2010.

- If you have maintained your home in good condition and price it in line with homes in your area, buyers will come!

- You may not gain as much on the sale of your house as you could but you will most definitely gain more house for the money on your buy side. Here's why: More expensive homes have built up a larger inventory than typical. This means a better value when buying up! If you made let's say $5000 less on your $100,000 home than you could in a couple of years for example. That $5000 lost equates to 5% of the home value.  If you just carried logic to your next home and buy now for let's say $200,000 you would save $10,000 (5%) on your buy side than you would by waiting a couple of years. A net gain of $5000! But in actuality there are more of those $200,000 plus homes out there and you'd probably save even more. 

If you have any questions on profit makers, buying programs, home values or marketing, don't hesitate to ask "The Agent." Run your research, thoughts or ideas by me. No obligations.  John Maurer 605-521-1183 (call or text). John@realestateretrievers.com.