Buying Real Estate in 2012 or 2014

The Question of "When is a good time to buy real estate?"  Uncle Sam lowered rates = (residential home loan interest rate will remain low through 2012 and 2013). 30-year fixed-rate mortgages are less than 5 percent, yes less than five percent. During November, 2011, 30 year home loan interest rates dipped below four percent, these are unheard of rates. It's almost like free money, not to mention if you equate current low home prices or short sale opportunities.

Everyone wants the real estate market to get better: Real estate agents are selling less homes than they once were, taking a huge decrease in take home pay. Builders are selling about one-tenth as many homes as they were selling in 2005. Appraisers have recently taken blame for the housing crisis, for either over-appraising residential property or under-appraising homes. Consumer markets are also waiting impatiently for a rebound of their local real estate markets.

For now, there's no reason you shouldn't buy a home now and take advantage of current low prices, "low mortgage interest rates" and a +surplus supply of homes in the market.

Please note below for new "Local Real Estate" realities.

* Buy now, but don't expect a quick spike in your home equity.

Credit Request - Today, prospective home buyers must have cash.  As they say, "need skin in the game." So be prepared to be asked if you have cash and how much percentage wise. FICO, yes what is your FICO score? Don't expect to get approved unless you have an extremely good FICO score (700 or higher, and at 760 to get the better interest rates).

Deals, Deals and Deals - There are short sales / foreclosures out there. To find them, you'll have to hire a great agent who really knows what he or she is doing, has connections within the foreclosure-sale departments of banks, and can guide you through the negotiation process.

Real Estate Reality - In the mid 2000's, many locals got the idea that there were massive profits to be made in real estate (many made profits), if only they could sell the properties quickly. The problem with that strategy became apparent when the real estate market crashed, and investors couldn't liquidate their properties fast enough.