This market is like a sale at Macy's

We are now on the other side of the Super Bowl, your Valentine has a gift (I hope) and we are heading into March. As the snow ends in Chicagoland, the buyers seem to venture out of their winter deep freeze and the market becomes more active. Congress is looking at various ways to unlock the Real Estate market and FHA is back with a vengence.

According to Dale Noble at Wells Fargo:

that with the new $8,000 tax credit for first time buyers ( or haven’t owned a home in the last three years ) that someone in essence could buy a home for $228,575 with no money down???

Under FHA terms of financing, a 3.5% down payment is required. 3.5% down on a $228,575 property is $8,000!!

Now, I understand that the down payment has to be given at the time of closing, and under FHA rules, the down payment can be:
• a 100% gift.
• a secured loan
• a loan against a retirement/401k account
• a bonus/commission check
• stock holdings, savings bonds
• a loan from a family member

This should inspire first time homebuyers to consider some of the well priced properties available. The sellers have come to terms with the market as it is. Is this the bottom of the market? If I knew that one, the President would be calling on me, however, in 20+ years, I have never seen this combination of affordability, low interest rates and available inventory. My suggestion is ... hurry before this sale is over!