According to all market indicators, the ﬁrst quarter of 2010 will have the biggest jump
in existing home sales in the Plainview Old Bethpage area since the markets
unfortunate down turn. The government has been purposely creating programs to
give buyers an incentive to purchase now.
There are three reasons for this.
First: According to the National Association of Realtors, existing home prices in the
northeast have dropped by 13% as compared to the same time last year. This drop
makes it more affordable for ﬁrst time buyers to purchase a home.
Secondly: Interest rates today are being held at an artiﬁcially low level due to the
government action of buying Mortgage Back Securities. As of March 31, our
government intends to stop buying Mortgage Back Securities.
And ﬁnally: According to knowledgeable economists we should start to see a steady
rise in mortgage interest rates. Ideally, this would result in the buyers motivation to
purchase now, rather than later so as to take advantage of these low interest rates.
This critical knowledge is supported by many respected sources, as shown below.
HSH & Associates:
rates will nudge closer to 6% than 5%
6 percent that sounds about right
6 percent by the end of 2010
It could be as high as 6.5%
7.5 percent to 8 percent
Taken from Steve Harney’s, Keeping Current Matters.
The New York Times reported on July 27 2009 “If prices come down another 10%
but interest rates increase by 1 percentage point, that would mean the same monthly
payment today versus waiting.”
A little known fact is that Federal Homebuyers Tax Credit, was expanded to
included existing homeowners. For more information go to:
www.arthurhasher.com/taxcredit. This amazing opportunity is set to expire on April
30, 2010. The government has stated that “there will be no renewal” of this
The Supply and Demand Theory
Considering all of the factors above, the ﬁrst quarter in the Plainview Old Bethpage
real estate market is an amazing opportunity that should not be missed. If you take
advantage of the knowledge provided here, you would have your pick of the litter and
the cream of the crop would be made available to YOU. There is so much inventory
to choose from, now is the best time to act while all the best the government has to
offer has been made available.
For sellers, NOW is the best time to get your home on the market. No one would
want to miss such an opportunity in this ﬁrst quarter, with such highly motivated
buyers. The second half of the year does not look as promising for the existing
home sales around country, or for the Plainview Old Bethpage area.
After this ﬁrst quarter, the government appears to be moving in a direction that would
attempt to clear up the short sale and foreclosure debacle our country is
experiencing. This problem will be the subject of one of my many future blogs to
come, so please return for future details on the subject of the United States serious
Real Estate troubles. Thank you for your time.
Licensed Real Estate Agent
Exit Realty Achieve
-Editor Stephanie D. Hasher