5 Positive Real Estate Trends in These Difficult Times

1. Mortgage Rates are still at historic lows.
 

While mortgage rates were already trending downward before mortgage giants Fannie Mae and Freddie Mac were placed in government conservatorship, but after the announcement about the companies' government takeover, rates on 30-year fixed-rate mortgages fell by 0.42 percentage point, the biggest weekly drop in more than 28 years.

Despite the appeal of the lower rates, it can be more difficult to obtain a mortgage, with banks less willing to take risks on loans these days. Only borrowers with excellent credit will qualify for the lowest rates. However, for potential homebuyers who do qualify, these lower rates could mean significant savings on monthly mortgage payments.

What can you do if you don't have good enough credit to secure the lowest interest rate? If you have additional money up front, you can pay "points" -- 1% of the sales price of the home to lower the interest rate. If you don't have the money to pay down any points, you may be able to negotiate to have the seller pay points to help you secure a better, long-term rate.

2. The Revitalization of Downtown Areas is Bringing Homebuyers Back

Hip buyers seeking the convenience of being near great food and culture are leading the surge towards a revitalization of urban areas across the nation. This trend holds true in the Lexington KY Real Estate Market, which is responsible for a slew of trendy, new condominium developments in downtown Lexington which are helping to increase the "cool factor" of living downtown.

Although the cores of most urban centers typically have higher crime rates and less desirable schools than in the suburbs, the revitalization efforts seen in many downtowns are helping cities face these challenges as they invest in projects and amenities to attract new residents. And with more and more people seeking to avoid long commutes and urban sprawl, homebuyers are once again flocking to the urban core.

3. Buyers and Sellers are Going Green

The past few years have brought on a keen awareness of how our individual lifestyles affect the environment. And if you been in the market for a new home, you've probably noticed that many homeowners are promoting the "green" benefits of their properties.

Which features are becoming more popular and effective? The most well known among the trend of eco-friendly features are appliances with energy star designations, which indicate they're among the most energy efficient appliances on the market.

Other features to look for in a green home include radiant floor heating systems, which are often more efficient at heating the living area in a space than forced air or heat pumps. Also look for tankless water heaters, which are more efficient than traditional hot water heaters that keep 40 or more gallons hot at all times, wasting a lot of electricity.

Other green treatments that are becoming common include the use of sustainable flooring products such as bamboo and cork; concrete countertops, which are often made from recycled materials, and paint products with low amounts of VOC's (volatile organic compounds), which cause sensitivity in many people.

4. Falling Prices and High Levels of Inventory Mean Great Selection for Buyers

While the Lexington KY Real Estate Market has started to see a slow down in the rate of house prices falling and a reduction of inventory compared to the same time in 2007, there's no doubt that there are many homes on the market and lots of bargains to be found. Vast selection and great prices combined with the $7500 federal tax rebate make it a fantastic time to buy a home, especially for first-time buyers.

5. The Cream is Rising to the Top

Just like in any industry, the real estate industry has many good agents and some, well, not so good agents. And when two people who've recently worked with an agent on a transaction run into each other, they're bound to swap stories. As is usually the case, people who've had a bad experience are more likely to be vocal than those who've had a good experience, so agents who are developing a bad reputation get found out pretty quickly, especially in a smaller community like Lexington, Kentucky.

In the "boom" days, you didn't necessarily have to work all that hard to get a house sold, so even agents with a questionable skill-set or work ethic could still eke out a living, but these days, if you're not pretty much on top of your game, you're not making in real estate -- period.

How do you know when you've found a good agent? A good agent will listen to what you have to say, go the extra mile to help your transaction flow as smoothly as possible and will help you remain objective when maneuvering the ins and outs of your transaction.

It's also important to hire an agent who is willing to tell you what you may not want to hear -- but should. If you're a buyer who is unrealistic about how much house you can get for the money in a given neighborhood, you'll want an agent to tell you so. No one likes to have someone rain on their parade, but in the end, you'll come to find out that your agent is doing you a favor by helping to keep your feet planted firmly in reality.
 

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