With falling prices and rising inventories, investors are finding themselves in the best buying position in almost a decade.
A recent polls by Reuters/Zogby tells us that it’s a good time to buy. And another poll by Associated Press and AOL also reveals that it’s a good time to buy but 60% of those polled won't buy any real estate within the next two years.
The disparity is probably due to economic fears which are causing consumers to tighten their purse strings. The Reuters/Zogby poll said that nearly 75% of American’s believe the economy is in a recession right now, and almost 50% rated their personal financial situation as negative.
The AP/AOL poll said that nearly 14% of mortgage holders fear they will miss a mortgage payment soon. And 30% said they are concerned their home’s value will decrease within the next two years.
The important thing to remember is that you should stay focused on your local neighborhood and those of your real estate investments. Remember that real estate is primarily driven by local economic factors such as jobs, housing inventory, and supply and demand.
There is no human invention more complex than the tax codes, and among the most complicated are the laws surrounding real estate investing. So, what follows is NOT to be considered legal advice — consult your attorney or tax accountant before making any decisions.
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Interestingly, the National Association of Realtors predicts a gradual recovery during the second half of 2008 as the mortgage situation improves.