What buyers should know in the next 6 months to score their best deals.

By
Managing Real Estate Broker with Alpine Lakes Real Estate Inc., NHRE# 02863

 

  Has it occurred to consumers Real Estate Sales have reached the perfect storm status?

There is a multitude of contributing factors, and in my opinion a very short window to achieve a great buy.

 

  

  Home Prices have fallen 32% since the peak in the second quarter in 2006.

Nationally prices are down to the pre 2002 levels, and in many locations they are below the year 2000 levels.

 

Consumer Confidence is in an up-ward trend.

Financial markets are on the rebound, and the Majority of economists predict an end to the Recession cycle by the end of the year.

 

Interest rates are at their lowest levels since the end of W.W.II

Borrowing money hasn’t been this cheap in most home buyer’s life time, and banks future profits demand that they not stay at this level for much longer.

Seller’s expectations will follow suite as the end of the recession cycle is signaled.

Prices may not rebound for some time due to current appraised values, but I will predict the willingness of sellers to discount their asking prices will diminish as the year draws to a close.

 

The bottom of any market cycle is signaled by the upward trend.

No one can say for sure when the bottom has been achieved, but we know for certain in hind sight when an upward trend has taken hold. In other words if you are waiting for the unequivocal sign we have reach bottom it will come after it happens not at the moment it takes hold.

 

I don’t have a crystal ball, but if you wait until the end of the year to buy you will have waited too long, to buy at the very bottom. It’s alright to buy as the market starts to recover; you gain equity quickly, buying as the market approaches the bottom is fine too you will see a small reversal at first then regain the equity and ride the value up over time. So waiting for the bottom will cost the buyer's their strength to negotiate price, the ability to choose among the best available inventory of suitable homes and passing up the best possible rates.

 

Mortgage interest rates can and will change every day based on market conditions. 

But the home buying process takes one or more months to complete if financing is required. So the banks can and will move faster than the Real estate buyers can or will. The banks are the same as the house in Las Vegas, the game is always slanted in their favor, and they’ll shut you off if you start winning too much.

 

                    

 

Posted by

                       

                                                                                                                                                                              Your-White Mountain New Hampshire real Estate Expert

                    steve@alpinelakes.com toll free 800-926-5653 /cell 603-381-7898

                        MLS search and Realtor web site: www.alpinelakes.com

                         My outside Blog: www.steveswhitemountainblog.com

                    Lincoln NH &  Local interest site: www.localism.com/nh/lincoln

    Grafton County NH MLS search

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
New Hampshire Grafton County Lincoln
Groups:
Realtors®
New England Professionals
Posts to Localism
Celebrating Free Enterprise
New Market Leaders
Tags:
steve loynd nh realtor
real estate consumer confidence
alpine lakes real estate co inc

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
3,980,931
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Now is the time to get into that buying mode.  I agree, if to many start 'winning' the banks will change the rules again!

May 27, 2009 02:38 PM #1
Rainmaker
575,553
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

I have been singing the same song for a month it is about to take off again don't wait.

May 27, 2009 02:46 PM #2
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Bill, consumers are at a disadvantage if they wait, or think banks will hold these rates while they keep looking.

May 27, 2009 10:07 PM #3
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Terry, It wouldn't take many sales to set the tone, and change the tides...a few good comps can stop the reversal of values pretty quickly.

May 27, 2009 10:10 PM #4
Rainmaker
453,646
Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904

The National News just gave buyers the GREEN light- here in my market sales have been on the rise for nearly 5 consecutive months- as prices decline.  The market is slowly on its way to a recovery at least here in Florida.

May 28, 2009 12:26 AM #5
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Allison...Timing is everything, buyers who still take the attitude that they will wait for the best deal will be default miss the best deal. I'm glad to hear the Florida market is improving that is a good indicator.

May 28, 2009 12:48 AM #6
Rainer
70,249
The Rains Team
Keller Williams Realty Atlanta Partners - Hoschton, GA
A higher standard in real estate

Hi Steve...You're so right--NOW is the time to buy! People think they'll just keep waiting around until the market hits rock bottom, but they won't really know that ahead of time. Better to get off the fence now and take advantage of these awesome interest rates and other incentives ($8K first-time home buyer and also the $1,800 tax credit for the state of Georgia)...time to buy a home!

Have a great day,

Anne Rains

May 28, 2009 04:03 AM #7
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Anne... I have been a Broker for over 25 years I remember in 1991 when places were a steal...in 1994-96

all those people that looked and didn't purchase said to me I could have bought for "X" in 1991. It will happen again I promise you, history does repeat itself.

May 28, 2009 06:03 AM #8
Ambassador
2,859,282
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

From your computer to my buyers eyes Steve!  I'm printing your blog and putting a copy on my bullentin board if that's okay with you?  I got my license in 1994 and see exactly what you are talking about.  I'm ready.  I have the inventory... come on buyers.

May 28, 2009 08:28 AM #9
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Tammy... You have my blessing...print, post and plaster if you wish. Steve

May 28, 2009 10:54 AM #10
Rainmaker
523,030
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Steve - All good observations. I add that one should buy whenever they intend to hold/live/enjoy for many years.  Real estate is not a stock!  Buy when you want it!

May 28, 2009 11:19 AM #11
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Wendy... good point real estate is a limited commodity but shouldn't be purchased if you can't hold it for at least 5 years.

May 28, 2009 11:25 AM #12
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,051,721

Steve Loynd

800-926-5653, White Mountains NH
ask about NH properties
*
*
*
*
Spam prevention

Additional Information