Germantown Real Estate Market Trends – Tennessee

Why NOW is the Prime Time to Buy! - October 11th, 2010 2:09pm
Home affordability is at an all-time high. The
median mortgage payment on the median priced
home as a percentage of the median household
income is lower than it's been in a generation.
Mortgage rates are at rock bottom. It's hard to
imagine interest rates going much lower, and
when they start to inch back upwards, monthly
payments and total loan costs will spike upwards.
Home prices are back on the rise. After declining
for 30 months, home prices are trending back
upward. The time get in to the market is NOW!
Sellers are motivated. This means that buyers
have the upper hand! From banks looking to
dispose of foreclosed properties to homeowners
who are fiercely competing among an excess of
housing inventory, buyers have untold choices and
negotiating power.
Financing is readily available! Banks are back
in the game and ready to lend to well-qualified
buyers.
Owning vs. renting is increasingly favorable.
Since 2009, the average principal and interest
payment has fallen below the average rental rates,
and the gap is now wider than it's been in the past
22 years.
Homeownership is still at the core of the
American Dream! Owning a home is critical
to financial stability and wealth building. It's
a forced savings account, a place to live and a
fabulous tax deduction.

7 Reasons to Buy a Home Now - October 11th, 2010 9:47am
http://www.kw.com/kw/GetPage.action?pageID=2269&futureView=true

News for Germantown, TN - August 9th, 2010 12:15pm
Great blog! Yes, it's great to own a home!

5 Reasons Why You Should Buy a Home Today

by Steve Harney on July 27, 2010



Homeownership almost seems like a dirty word in today's society. People are blogging, tweeting and facebooking their belief that buying a home is just plain stupid. I respect their opinion on the issue though I totally disagree. Why?

This might be the best time to buy a home in American real estate history.

Some might think I'm crazy. Cynics might think that I am saying this because I still hold a real estate license (though I have not listed nor sold a home in ten years). My reason for saying it is actually quite simple. Owning a home makes more sense than not owning a home for the vast majority of families in this country. Let me give you five reasons why.
1. Real Estate is a Great Long Term Investment

Don't take my word on this. This is what Mike Mandel, former chief economist at BusinessWeek and current Senior Fellow at Wharton's Mack Center for Technological Innovation, had to say:

We've just had the biggest boom and bust in real estate in recent history. Nevertheless, real estate has still greatly outperformed the stock market over the past ten years.

Below is his chart actually showing the difference between real estate and the stock market.

2. A Home Is a Better Place to Raise a Family

Don't take my word on this. When Fannie Mae asked current renters for the major reason to buy a house in their National Housing Survey 2010, these were the answers renters gave (they could pick multiple answers):

* 78% said it was a good place to raise children
* 75% said because they would feel safe
* 70% said because you have control of your own space

3. A Home Creates a Sense of Community

Don't take my word on this. The Federal Reserve Bank of New York just published a paper The Homeownership Gap. The paper explained:

Because owners have a financial interest in their property, they have incentives to take measures that will maintain or increase the value of that property. Some of these measures—such as fixing a leaky roof—are closely related to the house itself. Others, such as investing resources in the betterment of the neighborhood and the community, have broader beneficial effects on the local area, creating what economists call "positive externalities."

4. It's Cheaper to Own Than Rent in Many Parts of the Country

Don't take my word on this. Housing Wire just reported on a Credit Suisse study:

While a segment of the renting population continues to rent, many are looking to dip their toes in the homeownership waters. Credit Suisse said the percentage of median household income needed to pay the mortgage on a median priced home is at a 30-year low… Low mortgage rates and property values makes homeownership more attractive than renting for many. In many markets — including Washington DC, California's Inland Empire, Las Vegas and Phoenix — paying for a mortgage is less expensive than renting.

And here is a graph from the study:

5. The People Who Do Buy a Home Don't Regret It

Don't take my word on this. Probably the best people to ask if buying a home makes sense are the people who currently own homes. A recent national poll commissioned by Bankrate.com found:

Ninety percent of homeowners say they don't regret buying their home despite a nationwide tsunami of foreclosures, short sales and loan modifications.

It's a great long term investment. It's a great place to raise a family. It gives you a greater sense of community. It's less expensive than renting. People who currently own have no regrets. Buying a home seems like a no brainer to me... [ + Read Full Article ]

Sitting at an open house - June 27th, 2010 4:37pm
I'm at an open house and have had 2 visitors. Either the Heat or the market is producing fewer numbers then expected. I've adviced my sellers that it could be slow due to families taking summer vacations. It's still a great time to buy due to low interest rates and homes being more affordable. Collierville is great place to live and work, I'm confident that our market will continue to perform. Much better then renting, 100% of your money goes to someone else.