2010 will be an “Interesting” year in Real Estate!
by Kevin Jones … KEVIN JONES Real Estate and Loans
Everyday … Actually many times a day I am asked “How’s the Market” … the proper response … that depends …But for the Buyers out there … Buyers still have an incredible opportunity because the tax credit was extended through 2010, currently the interest rates are unbelieveably low! The forecast is that by mid year after the Feds pull out of buying all these FHA loans that the rates will be going up. How much? Nobody knows exactly but the buzz is that it will be at least 1% but more than likely closer to 1.5%! This is because a private or corporate investor has to make a higher profit margin on their investment and rightfully justifytheir possible risk associated with the current economy.
An increase of 1.5% on a $400,000 loan would increase your payments by $ per month and $ on a $1,000,000 loan. Now is a great time to buy while these properties are affordable! If the rates do increase to this amount, the same monthly payment on a $400,000 loan would now only buy you $340,000 or $850,000 loan vs. the million dollar loan. So your buying power will significantly decrease for the same amount of money! To get more information and maximize your buying power, call Kevin Jones today!
As a Seller, this is extremely important because with these same number and the lending institutions getting more strict by the day, you will lose a lot of qualified buyers in your price range when the rates go up! Less buyers mean longer marketing times, less demand which equates to less offers to choose from and the possibility of having to reduce your price even further! If you want the best possibility of getting the most out of your house value, you should call Kevin Jones now and discuss your options!
If you have thought of buying or selling this year, now is the time! Call Kevin Jones today! 818-955-SOLD (7653) to help you maximize your buying and or selling power!
Kevin Jones, Broker DRE #01128892
KEVIN JONES Real Estate & Loans
818-955-SOLD (7653)
original blog post:http://www.kevinjonesrealestateandloans.com/buyers/market-conditions-buyers/2010-will-be-an-interesting-year-in-real-estate/
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