Tuesday, March 11, 2008

Market Slow??? Not All That You Think

No doubt you wondered where I went!!!

Business has been solid in the Real Estate Market in Hampton Roads....how is it in your area?
Perhaps you are seeing it different. Yet buyers are putting contracts on my listings so that I might have the best March ever. On top of that, a number of buyers are getting serious about buying that new home they seek. I hope if you are seeking or selling a home that you are having the same good fortune.

Should you be sitting on the fence, you might want to know that the buyer of your house(should you need to move) or that the home you wish to buy may have a lower payment today than if you wait a year. How? You may ask.

A great mortgage officer I know, David Katz, pulled together a scenario that proves this point.
Assume the values of homes reduced by 5%(due to the lagging market...we were up 4.5% in 2007) but the rates go up only .05%, the following mortgages would exist:

Today's Value Today at 6% 5% Reduction In one year at 6.5%
$200,0000 $1163.13 $190,000 $1164.90

$300,000 $1744.69 $285,000 $1747.35

$400,000 $2158.38 $380,000 $2167.67

The above assumes 3% on 30 year note.

As you can see, based on this scenario, one can purchase today and have a lower house payment than waiting. Thus, buyers and sellers lock in today's market rather than testing the future to see if it is only modestly different in values and interest rates. Or will the interest rates go higher after the November election?? No one knows but this possibility must be considered.

So Today is the best day to seize your future...whether in real estate, your marriage or in attaining job satisfaction. It is all up to you!
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