NOW! While it may seem April 30 is a good deal in the future, the reality is it may take some time to purchase a home, particularly if you intend to obtain a mortgage for it. Typical loans now close in a minimum of 30 days and often close in 60 days. When you factor in 20 to 30 days to find a home, go through the negotiations, and seal the deal, you are now looking at 90 days from start to finish. On January 30 only 90 days are left until the deadline.

While it is possible to complete the whole process in 45 or 60 days, do you REALLY want to take that chance by waiting until February, or worse - March? Even if you only need a weekend to choose a home, there are other factors to consider. How quickly will the lender be ready to close the loan? What if the deal falls through during the negotiation process and you have to start looking again? What if the inspection finds a major defect and you want out?

My advice to you is start looking now. Interest rates are still hovering around a historically low 5%. As more buyers enter the market, competetion becomes more fierce and multiple-offer situations are more common. The sooner you start the better chance you have of getting the home you want and snagging the sweet tax credit as a bonus!

W. Todd Hess
www.HuntsvilleAlabamaHouses.com

Huntsville Area Statistics

Rarely a week goes by when I don't hear this question. It seems everyone is foreclosure conscious lately, and everyone is looking for a bargain. I receive, like many agents, multiple calls a week asking for a list of foreclosures - Most people want those foreclosures to be "move-in" ready.

The reality is the Huntsville and Madison County area is not suffering like much of the country. Recently, several major publications including "Forbes Magazine" cited the Huntsville and Madison County area as the #1 place to live during the economic downturn. But this has not deterred the demand for foreclosed properties in our area, and much of that demand is coming from people living in other states.

If this demand for foreclosed properties is not enough, there just aren't a lot of foreclosures available in our market, making the foreclosure market even more competitive. And banks know this.

Many foreclosures sell at full asking price. Full asking price is typically close to market value if the home is in livable condition. Notice I said "if". And that's a big "if". Many foreclosures are not in livable condition according to current FHA lending guidelines, and deals fall flat on a frequent basis because of it.

A recent nationwide statistic shows foreclosures sell at 99% of asking price while non-distressed properties sell at 95% of asking price. Clearly, this demand for foreclosed properties has influenced these numbers.

I learned a valuable lesson long ago - We love statistics. Whether it's sports, business, or medical, statistics give us a clear picture of what's really going on. I've compiled some foreclosure statistics for the Huntsville, Madison, and Madison County area. These results were compiled on November 20, 2009.

• The MLS showed 2879 active residential listings for sale in Madison County
• Of the 2879 listings, only 107 were foreclosures.
• Foreclosures comprised only 3.72% of the active listings, which is much lower than most of the rest of the country.
• The average (mean) asking price for the foreclosures was $161,039
• The median (middle) asking price for the foreclosures was $113,367
• The foreclosure with the lowest asking price was $22,900
• The foreclosure with the highest asking price was $8,895,000
   

Keep an eye out for the yearly statistics next month. As soon as those are released, I'll post them here. Until then have a Merry Christmas and Happy New Year!

Todd

www.HuntsvilleAlabamaHouses.com

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.