Thursday, April 16, 2009

It's pretty tough out here

Well the good news is that many homes are selling for 50 to 60% of what they had sold for in 2005 to 2006. This really means that buyers have a lot of options available and they can now buy homes that were completely unavailable to them a mere 3 years ago. The other good news is that interest rates are insanely low, anywhere from 4.625% to 5.55% depending on the program, the down payment, the points, and your particular credit worthiness.

The bad news is that most banks are still looking for excuses as to why not lend to you. Buyers should do everything within their power to make themselves as mortgageable as possible since we have now reached what I call the "Perfect Storm" of Real Estate. We now have very low prices coupled with very low interest rates. This is an awesome time to buy if you can. Best of luck to all of you!

1 Comments:

At 5/9/09, 3:38 PM, Anonymous Anonymous said...

Some very fair points here, but consider that sales are down, prices are way down and the economic landscape is bleak with news of more foreclosures and layoffs. If rates do rise, it's really no big deal. That will only put more downward pressure on house prices. I emphasize HOUSE (not home) prices, since my family rents a LEGAL apartment and I'm always asked, "Wouldn't you rather own a home?" Well, I'd like to buy a house at a fair price, thank you, but I alreay have a HOME.

 

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