Press Release

Weichert Provides Reality Check on the Current Housing Market

-- National real estate firm’s campaign arms consumers with real estate realities

so they can better understand the opportunities offered by today’s market --

MORRIS PLAINS, N.J.,  – Given today’s economic climate, it’s not surprising that many Americans are using extra caution before making investments. Still, the current market offers some great opportunities, particularly in real estate.

While Web site traffic and attendance at open houses suggests interest in real estate is as strong as ever, there seems to be some delay among consumers when it comes time to buy. Unfortunately much of this hesitancy results from a lack of understanding of the current market, or worse yet, altogether inaccurate information. Weichert, Realtors, has embarked on a nationwide initiative to help consumers decipher the facts from the fiction so they can better understand the current real estate market.

“Many of the buyers we work with initially have the same misperceptions,” said James M. Weichert, president and founder of Weichert, Realtors. “We want people to know the realities of the market so they can make an informed decision. When presented with the facts, it’s clear that now is the ideal time to buy.”

Weichert’s “Myth vs. Realty” awareness campaign looks to debunk many commonly held fallacies that exist about today’s real estate market.  Weichert will provide buyers and sellers with facts and information that dispel several common real estate myths.

Myth:                Now is not a good time to buy.

Reality:             It might be the best time to buy in decades.

Purchasing a home is always a worthwhile decision when you consider the many personal benefits that go with it. But there are also a number of factors that make the current market financially attractive.  Interest rates continue to remain at historically low levels. Home affordability is the best it has been in years and a large inventory of homes offers buyers more options and greater negotiating power.

“The current combination of price, inventory and interest rate has created the greatest scenario imaginable for buyers,” added Weichert. “An opportunity like this doesn’t happen every day, in fact, this might be the best time to buy that I have ever seen”

Many have already seized this opportunity to become a homeowner. According to the National Association of Realtors (NAR) 2008 Profile of Home Buyers and Sellers, the majority of buyers in 2008 were either renting or living with a relative prior to purchasing.  And nearly a third of all buyers said they bought because they felt it was the best time to buy due to affordability, availability or mortgage.

In any market, owning a home offers financial incentives. Homeowners can take advantage of tax deductions for mortgage interest and property taxes to receive some extra money. Owning a home is also one of the most common ways to build equity. In most cases, buyers who stay in their home for several years will see a nice return on their investment.

Myth:                Homes are not selling in this market.

Reality:             Homes that are priced right are selling every day.

While home sales aren’t near the high watermark they were during the peak of the market, it is a mistake to think homes aren’t selling. In fact, recent statistics seem to suggest that home sales are on the rise. NAR recently reported that existing home sales in December posted a 6.5 percent increase over the previous month and its Pending Home Sale Index, a forward-looking indicator based on contracts signed in December, rose 6.3 percent

Perhaps the most important thing for sellers to keep in mind in any market is that when a home is priced right it sells – and usually for close to list price. NAR’s 2008 profile study showed that the median home sold for 96 percent of its current list price.  

“When sellers understand the market and are realistic about the current value of their home, we find their homes usually sell in a reasonable amount of time,” added Weichert.

Myth: It’s nearly impossible to get a mortgage today, even with good credit.

Reality: There are plenty of lenders who have mortgage money readily available.

With the current uncertainty of the market, people have the misperception that there is no money available. While the “credit crunch” did impact some lenders who invested too heavily in risky loans, there are still many reliable, safe companies around that maintained responsible lending practices and are in a position to lend mortgage money. 

In fact, Weichert Financial Services reports that nine out of every 10 people who come to them are approved for a mortgage.  Perhaps the greatest evidence that people are still able to get loans is the recent increase in sales.

Myth: You need 20 percent down to buy a house now.

Reality: Still plenty of mortgage programs that offer flexibility for buyers.

The reality is that many lenders are still able to offer mortgages to buyers who have less than 20 percent available to put down on the purchase of a home. There are also many government programs available for such buyers.

“Many of the buyers we see at our seminars and open houses are interested in buying but think they must have 20 percent down in order to get a mortgage. That simply isn’t the case,” said Weichert. “Just the other day, I saw that we were able to provide a loan to a first-time buyer, who had good but not perfect credit, with only 3 percent down.”

With so many factors lined up in their favor, Weichert wants prospective buyers to understand the risk that comes with hesitating.

“If I were in the market for a new home, I wouldn’t take the chance of waiting around for a better deal. With all the factors lined up in favor of buyers, it’s more likely that you’ll be in a worse position to buy a year from now than you are today. ”

Weichert has nearly 18,000 sales associates in approximately 500 company-owned and franchised sales offices in key markets throughout the U.S.  A family of full-service real estate and financial services companies, Weichert helps customers buy and sell both residential and commercial real estate, and streamlines the delivery of mortgages and home and title insurance.  For more information, Weichert's customer service center can be reached at 1-800-USA-SOLD or at Weichert's Web site, www.weichert.com.  Each Weichert franchised office is independently owned and operated.

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