Low Rates Equates to More Buyers?

With interest rates seemingly hitting new lows every few months, prospective borrowers are starting to realize that buying a property is less than renting. For example, rents in Long Beach, CA on the eastern side are $800 for a 1-bedroom apartment all the way up to $2,000 for a 3 or 4 bedroom house.

Once can easily pick up a condo, that fell from the high $100s to $80,000 today and have a mortgage payment under $800. You have to think that at some point rates will rise and so will property values. Additionally, you get  a tax write-off on the property taxes, possible HOA write off (see your tax accountant) too. It appears to be a win-win. However, you will need to qualify at 2012 lending guidelines and not expect to see relaxed conditions from underwriting.  What I have noticed is that many of the attractively priced properties whether they be a short sale or foreclosure have multiple offers in this so-called depressed market.  People know there are deals out there. It is just a matter of qualifying for them and then being first to offer with a strong prospect of closing.