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My Blog
Let's face it...unless you don't own a home and have no desire to, you're probably interested in the health of the real estate market. Wherever I go, people who know I'm in the business ask the same question; "how's the market"? The answer is..."Stable". We still have a strong buyers market and if you're a buyer, the window of opportunity is slowly closing. Currently there is an incredible selection of homes to choose from. Prices have stabilized and mortgage rates are hovering around 5%...that won't last. Most experts agree that the amount of money being printed by the government will ultimately lead to inflation. When that happens...mortgage rates will go up. Right now, those who haven't owned a home within the last three years qualify for a tax credit of $8,000. It's an additional tax refund of $8,000... It's a gift from the government to jump start the housing market and the economy. What's surprising is that only about half of those who qualify even know about it.
Are you thinking of buying? Down sizing? Moving up? If you've been waiting for the market to bottom....it's here. Remember, you may sell for less, but it works the same way when you buy.
On the home page of my website; www.sandysandusky.com, is a red button called "Market Statistics". Click on the button to see a snap shot of the market. These numbers update on the 15th of each month with stats thru the previous month.
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Many sellers have been chasing a falling market as prices have continued to depreciate. What is "chasing a falling market"? Basically this: a seller insists on listing their home at a price higher than market value and then follows with a series of price reductions in an effort to attract a buyer. However, in a market where prices are falling you can chase the market down but never catch up to market value unless you're willing to make a much larger than normal price reduction.
We have seen many sellers who, after months of trying to sell, take their home off the market but put it back on at a later date at a price well below what the home would've sold for had they listed it correctly the first time around; tens of thousands of dollars lost.
Proper pricing is perhaps the most important skill a Realtor brings to the table. I certainly understand the apprehension many people have in pricing their home. If you disagree with your Realtor on market value, perhaps you should seek the advice of a property appraiser to resolve the issue.
Remember, even if you get a buyer to agree to a purchase price in excess of market value the lender will not lend more money than a home is worth...so back to the negotiating table you go...or let your buyer walk. How many additional house payments did you make during the marketing period and then how many days passed before you learned of the appraisal? Check your amortization schedule and see how much of those payments went to interest and consider also that in that same period prices may have continued to slide.
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Many people are wondering if now is the right time to buy; will prices go lower? Consider this: Make an offer on a property based on where you think prices will be in a year. You never know how the seller will respond. All over our country, sellers are going to their Realtor and asking them to go find that buyer who made an unacceptble offer and ask them to come do it again.
Property selection, price and mortgage rates are better than we've seen in a very long time. Most experts agree that all the government is doing to stimulate the economy will eventually lead to inflation; and with inflation comes higher mortgage rates. Buyers currently have a window of opportunity to find a great home, at a great price and a very attractive mortgage rate. When that window closes, it may be a very long time before it reopens. What if you don't catch the market at the very bottom...if you pay another percent or more on your mortgage what have you gained?
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Let's Face it...this market is brutal. The national media has made bold brush strokes regarding the real estate market; but without consideration for regional activity. While some parts of the country; California, Nevada, and Arizona have seen as much as 75% depreciation in property values, our local market has only seen a 30-35% decrease in values. Granted, 35% is painful...but it could be a lot worse. With FEMA pumping money into our area to rebuild after hurricane Katrina, and because we are an oil producing state we are much better off than most. With regard to foreclosures, Louisiana vacilates between 38th and 42nd in the number of foreclosures. That said, one must remember that even though you selling for less, you're also buying for less; it's all relative. You should also know there is a great advantage to buying up in a down market. When the market recovers, your equity position in real dollars is impressive.
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504-669-5233
