Tuesday, March 25, 2008

Buyers Are Buying. Wanna Know Why?

The reason according to Blanche Evans of Realty Times is simple.

"Consider that home prices [across the country] in February 2007 were $213,500 and interest rates for the month averaged nearly 6.5 percent. In 2008, prices are $195,000 and interest rates averaged 5.9 percent.

So it shouldn't be surprising that housing inventories have dieted down to a 9.6-month supply from over 10-months on hand in January."

Make perfect sense to me. Mortgage rates are low, low, low and there's plenty of inventory to choose from. I also think seller's are beginning to get a little more realistic with their asking prices. These are all ingredients for a market upswing.

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