Archive for May, 2011
I read an article by Greg Robb, MarketWatch, May 31, 2011,”U.S. Homes Prices in Double Dip Recession…Case-Shiller”.
Robb stated, “The prices of single-family homes in 20 major cities fell for the eighth straight month and confirmed that there is a double-dip in the housing market, according to the S&P/Case-Shiller home price index released Tuesday by Standard & Poor’s.
Home prices fell a non-seasonally adjusted 0.8% in March. Prices have moved down 3.6% in the past year. Home prices declined in 18 of the 20 metropolitan areas tracked by Case-Shiller in March compared with February. Washington D.C. and Seattle were the only markets where home prices increased in March.”
As I read I began to think about all the home buyers and sellers reading this report, I wondered how the continuation of negative news affects them. I thought about if they worried whether their homes would continue to lose value, or are they so despondent that they no longer believe their homes will ever sell? I could almost feel the acid building in their bellies with worry.
I asksed myself, “What would I do if I was still selling homes?” I’d blog, email the Housing Trends eNewsletter with a” buy now” personal message, post my opinions on all my social media sites, and call everyone I know to say that “it’s time to buy a home, time to stretch your dollars to spend less and buy more. Times are good for those with credit.”
Successful REALTORS are savvy enough to inform the consumer what their reading in the news has positive benefits for them. Reliable information is an opportunity to examine, study and explain the market trends to consumers.
Here’s what I’d do:
Interest rates are still very low, but all indications point to an increase. With good credit the consumer is in prime position to purchase more home in move up neighborhoods with better schools by buying now.
Use this example of the increase in interest rates. According to an example in Houston Chronicle by Freddie Mac Primary Mortgage Market survey (05/31/2011)
Loan Amount: $200,000
Interest Rate Principal & Interest Monthly Payment
“If you are the Seller, you will be able to take advantage on the Buying side if you act while interest rates are down. Low interest rates mean more available buyers in the market to buy your home. Plus, every day you linger in your home debating your selling decision, your asset, your home, loses value, but costs you the same amount to maintain it each month.”
According to Clifford Crabtree, CEO, First Continental Mortgage, “Mortgage rates aren’t expected to spike tomorrow. But as the economy improves and if inflation begins to affect more segments of the economy, rates should start to tick up.”
Agents, you should also learn about your state and local down payment assistance to assist your buyers and sellers. Watch for more information on Down Payment Assistance Programs.Read Full Post | Make a Comment ( 2 so far )