Happy New Year from our Family to Yours.
2008 saw fears of a housing recession become a reality as the “sub-prime” collapse and negative media blitz combined to slow down the demand for housing. The incredible rise in home values stalled and retreated to 2001 levels.
Home loan requirements for buyers returned to the “good old days” when qualifying meant good credit, a down payment and a job.
The new market has brought down home prices, but the savvy homeowner used the opportunity to purchase a larger home, and in most cases, came out ahead.
They understood that although the price had fallen on their current home, they had fallen even more on their new “move up” home. They had the foresight to see the “whole picture,” and thus came out ahead with the home of their dreams.
Despite all the negative news, here is some good news:
· Gas prices are 1/2 of what we have recently seen.
· Interest rates are around 5%.
· Chances of a real estate deal falling apart right before closing, due to
They understood that although the price had fallen on their current home, they had fallen even more on their new “move up” home. They had the foresight to see the “whole picture,” and thus came out ahead with the home of their dreams.
Despite all the negative news, here is some good news:
· Gas prices are 1/2 of what we have recently seen.
· Interest rates are around 5%.
· Chances of a real estate deal falling apart right before closing, due to
financing, are much smaller, because buyers are much more qualified.
· Bank of America is spending more than $8 billion to reduce
· Bank of America is spending more than $8 billion to reduce
interest rates so that borrowers can keep their home.
· Real estate lobbyists, from our National Association of Realtors,
· Real estate lobbyists, from our National Association of Realtors,
are pushing for more programs to increase the amount of buyers
and thus demand for existing homes.
· Qualified first time homebuyers can get a $7500 tax free credit,
· Qualified first time homebuyers can get a $7500 tax free credit,
payable at less than $500 per year.
· One of the governments top priority is to stabilize the housing
· One of the governments top priority is to stabilize the housing
market. You will see more programs with the new administration.
· Investors are buying rental properties to get positive cash flow.
Most of us are old enough to know that there are peaks and valleys in life and that includes economic times. A tough market has always evolved into a prosperous one. We will look back at this period as arguably the best time to BUY real estate in decades.
· Investors are buying rental properties to get positive cash flow.
Most of us are old enough to know that there are peaks and valleys in life and that includes economic times. A tough market has always evolved into a prosperous one. We will look back at this period as arguably the best time to BUY real estate in decades.
The experts say, “don’t try to time the market.” Rather, buy in the current “safe zone.” You will profit from having had the courage to buy now (in the safe zone) rather than chance later when values will inevitably rise again.
Thousands of agents are currently leaving the business. We were fortunate enough to work hard in hard times to be the top sales team for our Coldwell Banker office in 2008.
Remember that homes are still selling because people need to buy homes.
We thank you for reading our neighborhood newsletters, your business, for your referrals and helpful ideas.
As we enter our 25th year of serving the community, we wish you and your Family a Happy & healthy 2009!
Thousands of agents are currently leaving the business. We were fortunate enough to work hard in hard times to be the top sales team for our Coldwell Banker office in 2008.
Remember that homes are still selling because people need to buy homes.
We thank you for reading our neighborhood newsletters, your business, for your referrals and helpful ideas.
As we enter our 25th year of serving the community, we wish you and your Family a Happy & healthy 2009!
