Market Realism

Economic downturns provide ample opportunities to make money.
Remember - Most Sellers are also Buyers. If you sell at a discounted
price and you have purchased from the mid 1990's through 2005 your
home possibly appreciated up to as much as 80%. So now you have to take a
discounted price of 10 to 20%, you still made a nice profit.
When you go to purchase another home you have the advantage of a buyers market,
which means that there are many homes and few buyers. Your purchase price
will be discounted at the same 10 to 20%, possibly more with a highly motivated
seller. The interest rates are as low as 5.50% this week also.

However, if you decided to do a home equity loan to purchase a vehicle,
pay off credti cards or do remodeling, then you may have a situation
where you would need to bring cash to closing. If you don't need to sell
and you find yourself in this situation I'd suggest you wait until the market
changes. However, it may be a good time to refinance if you are in an adjustable
rate or interest only mortgage plan. Interest rates are favorable so check it out.
We have some favorite lenders that we recommend because we know they will not
take advantage of your situation. Call us for their names and telephone numbers.

We are anticipating that we will work even harder this year, but remember
there are always people who must sell and must buy. The real estate market is
not dead!!!!

January Updates

If you've kept up with the news lately the only thing you seem to hear is that the real estate market is really depressed (bad). I would agree that some of the things you read or hear are true but most are exaggerated to sell newspapers and to capture a listeners attention. It should be no surprise that the market would level off at some point, The surprise is that no one (no one) predicted that there would be a downturn that affected so many people. The economists are not always right either.
This is my prediction - Now the economists are saying that 2008 will be another
poor year, with foreclosures up, inventory high and new construction in the tank.
Well, I already see rumblings that this could be a better year. First of all, Buyers are more aware that there are bargains out there. They also realize that the interest rates have come down (5.85%) if you have a good credit rating.
Sellers who need to sell will always be with us. Either they are forced to sell or they simply choose to sell in this market. Retirement, Downsizing, Relocation etc. are all reasons someone may choose to sell. These people will not go away and are now more aware of the new pricing needed to sell their home. Simply put if we have a willing buyer and a willing seller we will put the transaction together. So, don't hesitate to check this market out at the very least.