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Changing Market

By
Real Estate Agent with RE/MAX Gold Coast REALTORS

There is no questions - we are in a "down" real estate market. The question is: Who does this hurt, and who does it benefit? This month, we will discuss the winners and losers in the current real estate market. Losers - If you purchased a home in the last two years and need to sell in this market, you have been hit hard by lower prices. Unless you had a down payment of at least 15-20%, you will likely need to bring in additional cash or will need financial assistance in order to close escrow. You also could be hit hard if you purchased your home with a low down payment and an adjustable-rate mortgage that is now adjusting to a significantly higher monthly payment. In appreciating markets, you could refinance into low-interest, fixed-rate loan. With the current market conditions, that option does exist. Winners - Buyers who could not afford the higher prices of two years ago may now be able to afford to enter the marketplace. This market also presents an opportunity for investors who look for two ingredients - low prices and low interest rates. Since both are present today, we look to see 2008 as an investor-rich market. There is a third category into which the majority of people fit. Most people fall into the unaffected category. They own a home that they do not plan on selling in the near future. Although the market has trailed down, history suggests it will be on the rise in the future, and they will be virtually unaffected by this "down" real estate market. In conclusion, real estate can be a volatile short-term investment, but it is a stable investment over the long term.

by Fidelity National Title Company

Lisa Harkson
RE/MAX Gold Coast REALTORS - Oxnard, CA
The Ventura County market is definitely a great opportunity for buyers. The prices in the beach and marina communities have dropped some, but this area always is pretty good at holding it's worth. Buyers, if you are worried that the market will still be moving downward, you could lose an great opportunity right now with the current prices. As long as you don't plan on selling in the near future, your home will keep it's value and appreciate in the long run.
Nov 27, 2007 02:35 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA
A down market is the time to buy.  Investors can take advantage of motivated sellers and lowers prices AND an increased demand for rental housing.
Nov 27, 2007 02:39 PM
Matt Ratcliffe, REALTOR
Keller Williams Realty Brazos Valley - College Station, TX
We feel so fortunate that our market continues.  We only appreciate 3-4% per year.  No wild swings.
Nov 27, 2007 02:43 PM
Chris Tertzagian
Carolina One Real Estate - Charleston, SC
Lisa,  I am in the process of calling my past client base who bought 3-5 years ago.  There is a definate interest from some who do not have to sell their home and are not afraid to rent.  Great opportunity there!  Winners!
Nov 27, 2007 02:51 PM
Ken Cook
Content, coding, marketing, host. - Marietta, GA
Content Marketer/Creator
I agree with Chris ... WINNERS! And Welcome to Active Rain!
Nov 27, 2007 03:22 PM