Happy New Year!!!!

Most of the economic indicators are positive.  Home prices rose again for the fifth straight month (in 11 out of 20 markets).  Inventories of existing homes are going down.  The Home Buyer’s Tax Credit has been extended and expanded to other than first time home buyers.

Mortgage rates are as low as the will ever go and are being held down by the Fed.  That will not last.  More later on that!

Housing prices, in most cases, have already bottomed out and are starting back up.  If you try to judge (guess) the absolute bottom you will be absolutely wrong.

If you buy now and miss the bottom by a few percentage points you will make up for it by your lower mortgage rate.  If you accidentally hit the bottom right on the money you will make out even better.

The Fed is spending 1.2 Trillion dollars buying up Mortgage Backed Securities.  That money is almost spent.  When its gone rates will jump back to where the market conditions dictate.  My guess is over 6% by early spring.

Remember, markets anticipate trends and smart money knows to jump in early.  As an example:  have you noticed all the new construction in Avalon?  There are three new houses on my block alone.

This is not necessarily a great time to sell, BUT it is definitely THE great time to BUY.

The goal is always to BUY LOW and SELL HIGH.

 Hope to talk to you in a fabulous 2010!!!!!

Ralph