edgartown: Clients and Prices
- 02/16/08 09:49 AM
I am pleasantly surprised with the surge of people visiting the island this weekend not to mention the e-mails and phone calls. Maybe sellers have finally realized what Exclusive Buyer Agents have know for a long time. Prices were just way to high. As new listigs come on the market at realistic prices there seems to be enough buyers out there for the house to sell quickly and with little effort. The key is how to I convince buyers that this the time for which they have been waiting. … (0 comments)
edgartown: Where do we go from here?
- 02/01/08 04:44 AM
Our clients continue to ask opinions on where the market and interest rates are headed. From my vantage point, we are looking at another cut in March of the rate at which the FED loans funds. This would bring the rate down to 2.5%. That is still not as low as we have seen in recent years but along with a good economic stimulus package will at least firm up home prices and make equity loans more accessible. We may see a further drop in mortgage loan interest rates but as Treasury note return goes up the end of a drop … (4 comments)
edgartown: Conforming to What?
- 01/24/08 08:49 AM
Our friends in Washington seem to think raising conforming loans to $625,000 and up is a way to handle the current "crisis". I am not convinced. The conforming amount for Martha's Vineyard will probably be $700,000. The fixed rate will end up below 6% maybe as low as 5.25% before all is said and done. Stopping at some half-way amount say $550,000 and then going to a HELOC for the balance on an individual basis might be better for certain individuals. With the HELOC rate dropping faster than we can keep up with, I for one would be willing to take … (0 comments)
edgartown: What about the slide?
- 01/23/08 09:08 AM
Last Thursday Ben Bernanke announced his intention to recommend a further cut in the prime rate charged to banks. My market currently has 20% fewer listings this winter than last. Interest rates had been declining for a week prior to that announcement and have continued the slide possibly in anticipation of the rate cut. If (and that is a big if after seeing home stocks declining in value) the slide in mortgage rates continue after the actual announcement, I anticipate the turn around is close. I heard a suggestion that there be a one time large reduction in rates as opposed … (1 comments)
edgartown: The Rates they are a'falling
- 01/23/08 08:44 AM
I just had a phone call from a mortgage broker. His rates have dropped tonight to 5.25 for conforming loans. Their re-fi's have spiked over 30%. This is activity and rates not seen since mid 2005. I expect another rate reduction at the scheduled FED meeting, possibly another 1/4 point. If resale home prices have bottomed out and begin any signs of moving up again, the interest rates will soon follow in that direction. The days after the FED meeting the end of the month could be an optimum time for sales and investor purchases particularly if little confidence is shown … (5 comments)
I am pleasantly surprised with the surge of people visiting the island this weekend not to mention the e-mails and phone calls. Maybe sellers have finally realized what Exclusive Buyer Agents have know for a long time. Prices were just way to high. As new listigs come on the market at realistic prices there seems to be enough buyers out there for the house to sell quickly and with little effort. The key is how to I convince buyers that this the time for which they have been waiting.;)
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