Hal's Mortgage Blog

The #1 reason given by potential homebuyers – they feel home prices have bottomed out. Could it be the market is poised for a slow and gradual recovery? Other reasons close behind were abundance of bargain priced foreclosures and fear of rising interest rates.

Who will these likely buyers be? First Time Home Buyers says the National Association of Realtors. Nearly 60% of all home purchases currently are FTHBs, under 34 years of age and living in the South or West.

Part of the increased activity is a result of the $8,000 Tax Credit. Now that it has been extended to purchases signed by April 30, 2010, Realtors here in Middle Tennessee are seeing good homes in the lower price range harder to find.

“Next year will clearly be better than this year,” says Mike Larson, Real Estate Analyst with Weiss Research. He predicts that the worst is over with a flat market leading up to 2012.

What should you do if you’re a buyer? Don’t sit on the sidelines too long. It’s still a buyer’s market but that advantage may be gradually shifting. If you’re ready to buy and it makes sense financially, don’t get caught looking in the rearview mirror.