There are many people who are glad to see 2009 finally be over. It was definitely a year of transition in the real estate market. The housing bubble burst of 2008-2009 has changed how people buy and sell homes. Heading into this New Year, what do you need to keep in mind as you look to buy or sell a home in Louisville?
Interest Rate! It has been said before, but always bears repeating, we are still seeing historically low interest rates. But with reports coming in that the economy may be stabilizing, we have seen in December that interest rates are at a two month high. While the price you pay for a home is very important, your interest rate plays a huge roll in what owning your home will cost. Raising interest rates is one way the Federal Reserve will try to stave off inflation if it begins to become a problem.
Now many are way too young to remember the inflation of the 1970's and early 80's, but there were homeowners who saw interest rates in the teens. For most of us that seems like one of those stories that our parents told of "walking to school, barefoot in 5 feet of snow, and it being uphill both ways." Just another way to remind us we should be grateful for what we have. But this is no story. Purchasing a home was not easy during those times.
Now in no way are we saying we will see interest rates that high in 2010, but you can expect to see mortgage interest rates raise if the economy truly is stabilizing. There is a lot of speculation on what 2010 will really bring, and honestly we won't know until we get there. However, if have been considering buying or selling your Louisville home, you may not want to delay that decision for very long.
The home buyer's tax credits will expire in April of 2010. There is a lot of doubt we will see that extended again. With the stricter lending practices and larger down payments required, these programs have and will make a big impact on home sales. Once those programs expire, we will see the market slow again. The time to buy or sell a home depends on what is right for you and your family, but don't miss a chance to take advantage of first time home buyer or repeat home buyer tax credits!
If you have questions about buying or selling your home, call Mollie Younger of Younger Group Real Estate!! We know Louisville! Our team can answer any of your questions about the home buyer tax credits or how interest rates can effect what you pay for your home.
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