Is Summer Every Going to Come?

Is the weather taking it's que from the real estate market or is the real estate market taking it's que from the weather? Right now both are a little cool. We know that eventually we'll be talking about how hot it is outside and ask ourselves why we didn't trust the process. Summer comes
every year - sometimes rather slowly but it does come.

The same with the real estate market. I can speak from experience that eventually the market
will turn around and the value of homes will rise. Just take a look back in history.
When I started my career out of high school as an abstract clerk ( typing the title entries
into the abstract of title) I would find interest rates as high as 12 and 13 percent way back in the
late 1800's and into the 1900's. Interest didn't stay at those rates. The rates varied according
to supply and demand. I also remember in the 1960's (now I'm dating myself) how our office
crew did every kind of cleaning job and eventually played cards at work because we were not
busy enough. (That's when a boss was concerned about laying anyone off because he knew he
would be causing a real income problem for families.)
Not only did this happen in the early years it happened in the early 1980's too. Interest rates
were at 13 to 15 percent and the people buying were transferees and those who could
afford the high rates. At that time you could not lock in on an interest nor could you get a loan
approved in less than 60 days. You actually had to have a down payment to get a loan. Everything was done manually. We had no fax machines, no
internet and no text messaging. Can you believe we got anything done?

Today we can lock into an interest rate as soon as you have a purchase agreement, you can
be pre-approved for a mortgage before you start looking and you can have the seller
pay up to 6% of your closing costs. How bad is that?

It's not bad. What are we complaining about? So interest rates are at 5.875% to 6.125%
We can get pre-approved and we can still put only 3% down. Not only that, FHA
loans are assumeable!!! This is a great time to buy. The price of homes are at the lowest
level that they have been in years. There is still an abundance of homes on the market.
So what if you take a hit on the house you are selling. You can make it up on the house you
are buying.
Remember - tomorrow is a new day. Just as the weather changes so does the market.