The 2009 market has become a prime landscape for home buying. Builders, faced with excess inventory, are dropping prices, and with a combination of low lending rates and flexible financing options, current conditions create an optimal buyers market. Buyers can now find luxury homes in hot spots like Palm Beach real estate at affordable prices. Still thinking about that vacation home? For those that are interested, but hesitant because of the current economic outlook, the time to act is now because, according to real estate experts, the market is expected to recover soon, causing prices to rise back up.
According to market expert Matt Car’s recent article on realtytimes.com, home prices in 381 U.S. metropolitan areas have dropped at an average of 25 percent. Builders and developers are battling excess inventory and are using aggressive pricing in order to spark demand. Because of this, it is now easier than ever for home buyers to find great deals on second homes. On top of that, builders are also throwing in extra incentives that second home buyers can take advantage of to earn extra dollars in additional savings.
There are currently low rates and flexible financing options for second home buyers that have good credit. The pull of the economy has tightened lending requirements for financing, but on the upside a recent real estate outlook on realtytimes.com marked qualified buyers getting an A.P.R. as low as 4.99% for 30-year fixed rates and 4.7% for fixed rate 15 year loans. Financial intermediaries are also offering favorable financing options including interim financing, which gives short term loans to buyers who can use it to gain time until market conditions to improve. Lending rates and financing options allow buyers to get the adequate funds they need to make a long term investment, like a second home, in an unsteady market.
Experts are predicting the market to recover soon, so it is important to act now before the prices begin to rise. A report by Moody’s Economy predicts that housing prices are expected to bottom out by the end of this year. The market is expected to then recover due to competitive pricing and policy measures that will keep interest rates down to increase demand. This, in turn, will ultimately stabilize prices. The current real estate outlook on realtytimes.com already shows an increase in demand with applications for new mortgages recently up by 48% and applications for conventional loans up by 11%.
Real Estate Hot Spots
Affluent residents from all over the world have looked to Palm Beach real estate as a hot spot for finding luxury second homes and condos at affordable prices. There are thousands of homes to choose from, ranging from resort-style, gated and golf communities, to oceanside condo’s and beach houses. For someone who has means, taking advantage of the buyers market and finding a second home in a premier location is a great investment idea when the market recovers.