Interest rates are hovering at historic lows of ~3.5%. Historical interest rates are 6-7% and have been as high as 15-18% as recently as the 1980s.
A 1% interest rate increase, translates into a roughly 10% increase in the price of a home or monthly mortgage rate. That means that a home that is currently worth $100,000 will be $110,000 or $120,000 with a 1-2% interest rate increase. A monthly payment of $700 will be $770 or $840!
With so few buyers today able to qualify for a mortgage or willing … (6 comments)
Around the Country lately, we are reading that the real estate market is recovering. But then reports of reduced sales for May - June come out. What is behind the numbers?
Well this article seems to provide a good explanation and is certainly true in our market in Ocala, Florida.
Behind the Numbers: Home Sales Fall, Led By Cheapest Homes "One reason for the drop: Sales are sluggish in the lower end of the market due to a scant supply of homes for sale in many parts of … (3 comments)
In BOLD, there is a script about doing more marketing on a listing that is not selling. Dianna Kokoszka talks about selling milk for almost $10 per gallon when the competitor is selling it for $3 a gallon.
We think of this every time we see listings with selling bonuses, repair allowances, etc. In almost all these cases, it is not the marketing that is not selling the home. And often it is not the condition. It is the price!!!
Thisarticle that just came out in the UPIsuggests an interesting phenomenon. “Some 37 percent of real estate pros now believe properties will appreciate in value, compared to just 15 percent who felt that way in the previous quarter. While 22 percent foresee a price decrease, that percentage is down from 42 percent last quarter. The remaining agents expect no change. Meanwhile, the share of polled homeowners who anticipate rising property prices rose to only 25 percent from last quarter’s 15 percent; 29 percent expect prices to decline.”
A woman brought a very limp duck into a veterinary surgeon. As she laid her pet on the table, the vet pulled out his stethoscope and listened to the bird's chest.
After a moment or two, the vet shook his head and sadly said, "I'm sorry, your duck, Cuddles, has passed away."
The distressed woman wailed, "Are you sure?" "Yes, I am sure. Your duck is dead," replied the vet..
"How can you be so sure?" she protested. "I mean you haven't done any testing on him or anything. He … (4 comments)
home prices: In Most Cities it is Cheaper to Buy than Rent! - Stronger Lure for Prospective Home Buyers
- 11/26/11 12:14 AM
In Most Cities it is Cheaper to Buy than Rent! - Stronger Lure for Prospective Home Buyers As the Wall Street Journal reports in most cities it is much cheaper to buy than rent. Then why are there so many reluctant home buyers on the sidelines? In Ocala & Marion County, the median home (3 bedroom, 2 bath, 2 car garage) sells for $80,000. Principal, interest, taxes and insurance would mean a total payment of $581.93. To rent the equivalent home would be ~$800; if you can find it! So why so many reluctant home buyers? Yes, for some it is credit. … (6 comments)
The peak of the market was ~November 2005. That was the best time to sell in the past 6 years. And NOW was the best time every since then!
When is the best time to sell in next 5 years?
Well if prices fall another 5-10% and then recover at the historical rate of 3-4%; the price you get today will be the best you will get over the next 5 years! So the best time to sell in Ocala & Marion County is NOW!
… (2 comments)
home prices: How Low Can They Go? How Low Can You Go?
- 10/01/11 06:15 AM
How Low Can They Go? Anyone close to my age may remember the Limbo dance craze. Remember "How Low Can you Go?" Well now it is mortgage rates! How Low Can They Go? Rate on 30-year mortgage falls to record 4.01% Of course in my area of Ocala & Marion County Florida, the same could be said of home prices. But there is strong indcation that the bottom has been reached. In fact on the lower end, homes are selling 20-30% below builder and replacement costs. Multiple offers and competition with investors is frustrating many first time home buyers. In my opinion, … (3 comments)
home prices: Tired of Paying Rent? Tired of Paying Your Landlord's Mortgage?
- 09/05/11 08:01 AM
Tired of Paying Rent? Tired of Paying Your Landlord's Mortgage? How much do you pay per month of rrent? $700? $800? $1000? How would you like to buy a like new house in Ocala & Marion County for only $700 per month? Mortgage rates are still near historic lows. Yes that is right! $700 per month buys the average priced home in Marion County including principal, interest, taxes and insurance. Start building some equity! Call 352-547-1074, or email Bob&BobtheRealtor.net! Or visit BobtheRealtor.net and search for ALL homes in Marion County and surrounding areas. This not only makes it a great time to buy, … (2 comments)
Author Bio: Let The Bob Miller Team's 45+ years of finding solutions; solve YOUR real estate needs.
We SELL homes! Find your dream home or a great investment! Can we sell it? Yes we can! Call us today 352-547-1086
Sellers! Sell Now Before the Interest Rates Go Up!
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