JULY 2010. BUY A HOUSE. SAVE 15%! LIMITED TIME ONLY Really. If you think you missed the bargains of last year, put your regrets away. And thank your lucky stars that the economy is still sluggish. That’s why interest rates are the best they’ve been in over 39 years! Otherwise known as a once in a lifetime opportunity... this is you chance to lock in the bargain basement of interest rates, now around 4.5% for a 30 year fixed conventional loan. It simply means this: it will cost you 15% less to buy a house right now versus the end of 2008 when were having the Filenes Basement of real estate. Follow these figures. At the end of 2008, interest rates were hovering around 6%. So on a conventional loan of $415,000, you payment would have been $2,490. Now, on that same loan amount, your payment would be $2,104. A savings of $386, or over 15%! So whether you’re thinking about a different house, your first house, even investment property, or refinancing, don’t wait. March directly to your mortgage broker – or give me a call for a recommendation. Because housing prices have pretty much hit their bottom, in fact in many cases, are up from the bottom. As the economy improves and confidence starts to spread, interest rates will definitely go up – a lot. That means the cost of buying a house will go up significantly -- even if housing prices stay the same. And actually, once the economy improves, housing prices will also gradually start to appreciate again. May, 2010. Ride “em Cowgirl!
If you look out at the real estate horizon, the market is definitely better than it was a year ago. Just a little wilder. Sales are up. Prices are up – on anything below $500,000. In fact, in the near East Bay (Oakland, Berkeley, Alameda, San Leandro to Richmond), there’s only a 2 month supply of homes, which we haven’t seen since 2006/2007.
If you look a little closer, that’s where the herds separate. The bulk (like 82%) of properties selling are below $500,000. That’s also the part of the market getting multiple offers and big overbids. Interestingly, most of those are listed 50% below what they sold for in 2006/2007.
Compare that to the midmarket, where prices haven’t declined as much, but where also multiple offers are less frequent – except Berkeley and Rockridge. And the $1 million and over market depends on the area, with Berkeley and Rockridge picking up. Banks are putting us all through hoops with many new requirements. Interest rates are slated to rise in the next 6 months.
So whether you’re buying or selling, now is a better time than waiting. Interest rates are still hovering around 5%, and there’s still a state tax credit for new buyers.
If you’d like to take advantage of the “discount” prices these days, or you want to make the most of this market as a seller, just give us a call ( 510-273-9318) or fill out the form below.
We look forward to seeing you!
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