What's Next?
If you're planning for a lifetime of real estate ownership, you need to start paying attention to economic trends nationally and your own community. In late 2007, the increase in foreclosures had increased the inventory of housing on the market to the point that experts believed lower pricing would finally wake up buyers to come back into the market.
The approach anyone should take in real estate is the same as in the investing arena: Buy low and sell high. One of the best things about studying mortgage financing is that you'll be ready to attract the right loan once you're ready to buy.
Who moves the most? According to the U.S. Census Bureau, there's a strong correlation between education and mobility. The most frequent movers are individuals at the educational extremes — the high school dropouts and the college educated. Those in the middle, people who complete high school but do not go on to college, have the lowest mobility rate.
According to the National Association of Realtors (NAR), existing home sales (as opposed to brand-new homes) were expected to total 6.11 million in 2007 and 6.37 million in 2008, down from 6.48 million in 2006. Markets that pull in their oars on new construction are expected to see prices stabilize in 2008, which the NAR predicted would be “a good time for first-time buyers with a long-term view to test the housing waters.” The NAR added that they'd expect the thirty-year fixed mortgage to average 6.6 percent in 2008.
Why are these numbers important? Because if you want to be a homeowner, you need to start watching the course of the housing market to get a better sense of when you should buy, sell, or refinance.
Economic data may be a little dry, but if you don't like to spend time reading the newspaper, try and catch the headlines on television. You'll borrow smarter and be in better control of your money.
