The Shift – Stimulated Markets
Green grass and sunny days are amongst us! It’s time to get moving again. Spring boom is how I usually describe the real estate market this time of year. 2009 lends a new tag phrase I’ve been using for the market shift we are experiencing, HOT, HOT, HOT!
A cooperating effort between the Federal government, NAR (National Association of Realtor) and increased FHA loan limits gives people the tools they need to buy today. The Federal government provided a needed stimulus for real estate sales for the bread and butter market; the market recognized as the median home values. The $8,000 first time buyer tax credit paired with historic low mortgage rates have created numerous new homeowners and move up buyers. The trickle-up of home sales in the median sale price have converted sellers into buyers for more expensive homes.
The Cedar Rapids Area Association of Realtors sales statistics reflect amazing home movement under a $150,000 sales price. A seller’s list to sales price ratio has increased and the average days on market has dropped. The housing shortage created by our recent flood has also increased the demand for this price range of home.
The stimulated market activity for homes under $150,000 has helped the move up market. The move up market has struggled with a decrease of relocating home buyers. Increased FHA loan limits with a low mortgage interest rate has allowed buyers to afford more home price for less monthly payment. Buying a better home for less money equals market stimulus!
If you have ever considered building or moving up to a luxury home, it is your time. The deflated financial markets remind us that real estate is a good option for your dollar. The tax savings from the mortgage interest and property tax deduction also create tax relief for you. Home builders welcome the opportunity to build the home of your dreams for a fair price in today’s market.
To view homes for sale in the
Heather Morris CRS, GRI, ABR, CLHMS
Broker Associate/ Skogman Realty
