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I would like to wish you and your family a Happy Holiday season and good wishes in the New Year!
Often the new year is a time for people to make resolutions and move on projects that they had put off until after the holidays. Maybe you or someone you know has been hesitating on buying or selling a home. I just wanted to share with you a few reasons why the current economy is prime for buyers, and sellers who want to buy up. I’ll even share my own story.
With the continued downturn of the economy, a few options have opened up for buyers. Interest rates are extremely low and are falling. The good news is that if you were waiting for home prices to come down, the drop in interest rates has essentially made home prices lower.
There is more good news: Home prices are falling. With the lingering inventory, (i.e. more choice for buyers) sellers are getting realistic about what the market will yield for their house. They are willing to not only drop price, but also negotiate. If you locked in on an interest rate that was somewhere in the 5% range, and rates continue to drop, speak to your mortgage officer about refinancing. You’ll be sitting pretty when the market and interest rates start heading back up.
Unfortunately for some home owners, but in favor of buyers, are a number of homes which are short sales or bank owned. These can take more time to buy, but often a real bargain for savvy (and patient) home shoppers.
So, how does all of this help sellers who want to buy up? If you price your home aggressively, it will likely sell within a reasonable amount of time. (my marketing skills will help this process along!) Even if you get less than what you paid for, as long as you still have equity in your home, you can use the equity as a down payment to buy up. It worked for me. My story is below.
I would like to invite you to begin your home search with me. I think 2009 is going to be a huge year for buyers and then the market will begin to shift back toward sellers, meaning fewer homes to choose from, higher prices and interest rates.
Enjoy your holiday, and give me a call in the new year. I am excited to help you find your perfect new home! Please let me know of anyone you know who is thinking about making a real estate move in 2009! I would love to give them info and answer any questions they may have. I think it is going to be a big year for home sales!
Cheers,
Jen
P.S. Here is the story I promised you:
On October 21 I put my condo on the market, by October 27 we had accepted an offer and closed on November 24. I had multiple offers, and others who wanted to come back for second and third looks. When they heard that we had accepted an offer they asked me to let them know if the deal ever fell through so that they could make an offer as well. Meanwhile, my husband and I had submitted an offer on a short sale of a nice single family home. We waited three weeks for the offer to be accepted. We closed yesterday, December 23. Not all short sales move that quickly. Some are slower, some are faster. The point is that real estate is moving because of the lending environment, and we were able to buy up from a 1600 square foot condo to a 2300 square foot house with a two car garage and a private yard for less than what we paid for the condo four years ago.
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