Tired of hearing nothing but bad news?  If you’re like me, its time to focus on positives.  Look at the glass as being half full, not half empty.  And there is some encouraging news on the home front.  In fact if you take everything into consideration, now really is a great time to buy a home.

On Thursday, Freddie Mac reported that average rates on 30-year fixed-rate mortgages dropped to 5.53 percent.  Believe it or not, this is the largest one-week drop in 27 years, and brought rates nearly as low as they were in early January.  Compare these to the 10 percent rates in 1990 (when we were relocating from Nashville to Pittsburgh).  If you’ve been thinking about buying or selling, there may never be a better time than now.

And there are hints that more help could be on the way if the government launches an industry-backed plan to lower the rate on a 30-year mortgage to 4.5 percent by spending hundreds of billions to buy mortgage-backed securities issued by Fannie Mae and Freddie Mac.  If you’re looking for a new home, there’s no better interest rate news than this.

Want more good news?  We live in one of the best cities in America to raise kids.  That’s right!  Business Week magazine recently included Murfreesboro among the best and most affordable cities in the U.S. to bring up a family.  The outside world is already discovering what Rutherford County residents already know.   So, what’s the benefit for you and me?  Our property values should continue to appreciate (after the recession passes).  We will continue to attract newcomers due to our growing retail base, new hospital, MTSU and other attractions which for the time being it equate to a high quality of living.  Best of all, you can still buy a home in our county for much less than you might pay for a similar property in the county immediately to our west. 

Just remember that when our real estate market is compared to the state and national statistics, we’re holding our own better than most.  There has never has been a better time to take advantage of the market.  The increased inventory offers prospective buyers a wide range of choices at all price levels – both new and existing.  But, have you noticed that new home inventory has begun to fall and not many new homes are being started?  Before long the market will return to a steadier pace and the huge incentives that are being offered will one again, fade away.  It’s time to act now and take advantage while market conditions favor the buyer.

Originally posted December 7, 2008