What's New in the Real Estate Market?
What’s New in the Real Estate Market?
Looking at the media coverage of our economic conditions a person could begin to feel a bit discouraged. When you look at the big picture there are some very good things happening as well. The number one factor that is so important to buyers is the fact that interest rates are very low. Talking to a mortgage consultant this week – there is an offer from one of the major banks of 4.38% for a 5 year term. During the recession of the 1980’s interest rates reached an all time high when they climbed to 21%.
The next important factor is that house prices have come down – particularly in the last four months. For these two reasons it is now a great time to purchase your first home, invest in a rental property or move up to a more executive dwelling.
If you own a modest home, condo or town home – you may have noticed that prices have not drastically dropped. They have adjusted a little but more expensive dwellings have [percentage wise] reduced their prices much lower. This makes it such a wonderful market to move up in.
We all know that the stock market goes up and down, however, stock brokers never say “it’s a bad market”, they say “it’s a Bear Market or a Bull Market”. When we have a Bear Market it is a good time to buy stocks. When it is a Bull market it’s a great time to sell stocks. And so, you can see that Stock Markets are never referred to as a bad market only a good one for either buyers or sellers. In a “Bear” Real Estate Market it is a great time to buy but it is a great time for Sellers. They may sell a little lower than in a Bear Market but they will pay less when they buy!
So – we live in the best place in the World and in this “Bear” Real Estate Market with historically low interest rates it’s a great time to buy!
Please contract me anytime with your thoughts and questions. Enjoy 2009! Spring is just around the corner!
Sincerely,
Susan Pelzer