This question comes up constantly – “Is the media correct when predicting the real estate market?” I believe the answer is NO. Someone once told me that the media predicted 5 of the last 3 depressions… in other words, negativity & controversy sells, so that’s what the media will promote. They make everyone so nervous that in the end, it actually comes true – it becomes a self-fulfilling prophecy.
So whom should you listen to in regards to the real estate market? THE PROFESSIONALS! You wouldn’t ask your dentist to review your taxes, and you wouldn’t ask your accountant to fill your cavity – so why would you listen to the media when it comes to one of the biggest financial decisions of your life? You should be listening to licensed Realtors & mortgage brokers in the area that you’re interested in purchasing. We live & breathe real estate. We understand what drives the market. If you want the “truth” about the real estate market, just ask US!
THIS IS THE BEST TIME TO BUY. I can tell you that the wise buyers have already jumped into the market – interest rates are historically low, & prices are back to levels we haven’t seen since the mid 2000s. Don’t wait for the foreclosures to show up – we’ve been waiting for those to appear for a few years now. The banks will not flood the market by releasing their entire inventory at once. They did that in 2008, and it made the prices drop in most areas by about 25-35%… they learned their lesson…
This letter was sent to me today by Jim Doty, VP of Tristar Mortgage:
“It’s amazing in the year 2010 we would be talking about interest rates as low as 3.99% on a 30 yr fixed and 3.5% on a 15 year fixed. As part of the baby boomer generation, I used to hear my parents talk about interest rates as low as this. In the 1950’s rates were this low. Who would have predicted 50 yrs later they would be this low again? What a great opportunity for our children and ourselves to be able to purchase homes in 2010 with these extraordinary rates! For those homeowners who have existing home loans, this is the time to upgrade your home and keep the same payments you are currently making on your home now for a better product. For our young adults there is great opportunity to purchase their 1st home with down payments as low as 3.5%. In most cases, their mortgage payment will be as low as what they are currently renting their apartment or home for now. In a time when our income taxes are on the rise, I think it is imperative for people to take all the tax advantage they can get. It is a win-win situation for people to take advantage of low rates and a tax write off. So take action now and give yourself the opportunity to take advantage of the American Dream!”
The point? As a buyer, the ball is in your court. Low rates, low prices, motivated sellers – a perfect combination. Pick the right Realtor to negotiate on your behalf, and you have the final piece to the puzzle.