Market Watch For August 2010

Two months have passed since the expiration of the homebuyer’s tax credit and we’ve had time to see how the market would react.  As I predicted, we did see a decline in closed transactions from May and June levels as a result of a decrease in written transactions from the previous months.  And while the news isn’t great, it’s better than expected.  July brought an increase in written contracts up 37% from May and up 22% from June.  I believe July written contracts are more representative of the remainder of the year than either the spectacular numbers we saw in March and April or the depressed numbers we saw in May and June.

The tax credit has expired, but there really has never been a better time to buy.  I mentioned briefly last month that interest rates were attractive but I don’t think many potential buyers realize how much more house the same payment buys today than it did not long ago.  Thirty year fixed rates are now about 4.25%.  On a $100,000 loan that monthly payment (before taxes and insurance) is only $492.  That is $75 a month less than the payment at 5.5% and $140 a month less than the payment at 6.5%.  Buyers can buy the same home and have more money in their pocket or buy a bigger home with the same payment.  Either way rates are great and will not stay at this level.  Don’t miss your chance to take advantage of this opportunity.

While you are shopping for your home don’t forget that TuckerMobile.com allows you to search for any listed home from any smart phone.  It is easy to search by price, address or MLS number and you can save your search results.  Please call me at 812-499-9234 if you have any questions. 

We would like to take this opportunity to congratulate Kevin Eastridge Broker/Owner of F.C.TuckerEmge Realtors this year’s recipient of the Realtor of The Year 2010 Award.

Enjoy your Labor Day weekend and I’ll update you again next month.