On April 11^th, 2011 I wrote about a sweet spot in our regional market. At the time the median price of a home was about 10% below what the median income of our region would dictate. My prediction was median home prices would rise as potential home buyer’s caught on to the bargain. I was right. Home values across the region started rising.

I believe we are at another sweet spot in our regional market due to a few things coming together.

First, interest rates are still incredibly low for FHA, VA and Conventional financing. Since this is an information piece and not a solicitation for a loan application, an The same is true for Jumbo loans. The bottom line, mortgage money is very cheap right now.*

Second, inventory is pretty good. There are many homes listed in the region with some area’s chock full of real bargains, listed at price points that will seem crazy three years from now.

Last, buyers are holding back and we are seeing price drops on listings. These price drops are not large, but they are drops. This makes it easier for you to negotiate things like seller paid closing costs.

Why are buyers reluctant?

I believe you can make a good argument for the consumers notion it is extremely difficult getting a mortgage loan. We all know the horror stories of incessant demands for documentation, documentation and more documentation? Ok, we get it. But seriously, it boils down to nailing down your current financial situation, analyzing what you can afford based on all of your information and then approving your loan. This is how things are today, by rules, regulation and frankly, sound lending practices. Many are jumping through the hoops and getting approved. Granted, you need to put your financial life on hold until the process is over but it is well worth it. You move yourself from renting to owning and paying off a mortgage with an interest rate at a historically low level while your housing asset predictably appreciates over the long haul.

What is the bottom line? We are in another sweet spot and now is a great time to buy a home! Should you worry about list prices dropping a little? Not at all. The fundamentals for the Puget Sound Region are very strong moving forward.

*Rates and fees are determined by your credit score, down payment, loan type and other factors so always seek a quote from a reliable source that includes an APR calculation. Understand, all loan terms, including the available rate and APR are subject to change without notice until all qualifying criteria for a specific loan transaction have been established. Consult your lender for details.