My last blog post - a year ago (!) - was all about rising interest rates. So, I'm grown-up, I can admit when I'm wrong. Interest rates continue at more than historic lows. My GRANDFATHER told me he bought his first house at 3%. Contrast that with my dad who mortgaged the home I grew up in in Ohio at 12% until he could refinance later. So, with rates bouncing around the 4% range how much better can it get? And with Bernanke talking about keeping the Fed rate effectively at 0% for the forseeable future, property values in the tank, and consumer confidence up a bit, we're in fat city, right? TIME TO BUY!

And that is exactly what seems to be happening around Wilmington, Delaware. Wilmington Delaware Mid-market HomeThe sweet spot market - homes valued at $150,000 to $250,000 (for the Wilmington, Delaware market) - is moving very briskly now. 

 

 

 

We are getting multiple offers on listings in that price range as the pent-up demand from first-time home-buyers begins to manifest itself. Theoretically, that may bode well for the up-market homes. As first-time buyers are finally getting into the market those who have been sitting on these mid-market homes can finally move up, or even out of state to that other job. 

Wilmington, Delaware Up-market Home

What a relief for those of us who have been selling $10,000 townhomes in the city to investors for cash! 

Wilmington Delaware Townhome

 

 

 


  

 

BUT - I raise a caveat. There is talk of a recession at the end of the year or the beginning of next year. The fact is the country has borrowed TOO much money and cannot continue on the path it is on. The government is telling us that inflation is in check. But I have to say, anecdotally, everything I buy costs more than it did two years ago. I don't need any government statistics to confirm that - my QuickBook reports of my personal and business accounts show it readily enough. In my humble opinion we have a respite, an opportunity to make hay while the sun shines, over the next several months before the election. My advice to buyers and sellers - make it happen now. All bets are off after the election. 

 

Interest Rates Are On The Rise
04/26/2011
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Mortgage interest rates are on the rise. I've been preaching this for some time now (see my blog post of February 21, 2011) but the Federal Housing Finance Agency has made it official: the average mortgage interest rate hit 5. 06% for the month of… more
Real Estate Market Trends In New Castle County Delaware - Part One
04/21/2011
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Real Estate Market Trends In New Castle County Delaware – Part One As the spring market starts winding up, my clients and friends are asking me about real estate market trends in New Castle County. I thought I would dedicate some posts on… more
Current Real Estate Market Trends in Delaware, Pennsylvania, New…
03/28/2011
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Current real estate market trends in Delaware, Pennsylvania and New Jersey are a buyer’s dream. It’s useful for buyers relocating to any city in the tri-state area to evaluate real estate market trends in the area as a whole. Anyone relocating from… more
Useful Little Maps and Graphs from the National Association of…
03/23/2011
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College students across the country are familiar with the ritual of checking the professors' bulletin boards for one's test scores and class standing to be posted - always discreetly by student ID. The National Association of Realtors has recently… more
Reading Between the (Property) Lines
03/22/2011
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A recent statement by NAR (National Association of Realtors) Chief Economist Lawrence Yun is revealing: "Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained by the twin… more
Lions and Tigers and MERS - Oh My!
03/17/2011
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When I was a little boy, four years old I think, I saw "The Wizard of Oz" for the first time. It frightened me so much that I hid behind the couch, peeking every so often over the back of it to try and follow along. Something about those flying… more
The Beige Book Is Out - Or What Does My Lunch Money Have To Do With…
03/03/2011
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So, the Feds famous (or infamous, depending… ) Beige Book is out with current trends on all things economic in the country. The overall consensus appears to be modestly positive. The caveat is that the real estate market is still moping along… more
Warren Calls The Bottom of the Market
03/01/2011
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Warren Buffet has announced that we've hit the bottom of the housing market - it's all going to get better now. (You can read the article here: http://timandjulieharris. com/2011/02/28/warren-buffett-predicts-housing-recovery-this-year-has-housing… more
It's MERS Stupid!!! (Referencing the now famous "It's the economy,…
02/28/2011
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The MERS controversy is at the core of the foreclosure mess and it's getting nearly zero coverage. Why? Because it's very complicated and can't be explained in two or three minute news bites. There are two articles on John Mauldin's blog that… more
 


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