Housing Slump Not a Financial Disaster For Some Equity-Rich Homeowners
Lafayette, CA -- The housing slowdown has hit, bringing with it record numbers of home inventories along with puzzled, frustrated, even angry sellers.
So what is a potential seller supposed to do? Steve Snyder of C M G Mortgage Services says, "Don't panic, the best advice I can give is simply ride it out. In 2000, when the stock market threw many investors into turmoil, the ones who rode out the storm benefited.
"Indications are that the housing slump is already correcting itself and that in another year it will be back to where it was a couple years ago," Snyder said. "If you're prepared, falling prices of housing are not necessarily a bad thing for homeowners."
Trading up opens some doors for many homeowners, who traditionally follow a very predictable buying home pattern. Most start out with a modest starter home as young adults. When they begin to have a family, they want to move into a home with more space. As the family grows and the children become older, they may change homes another time or two. As they become empty nesters and think about retirement they will look at downsizing into a smaller home or condo.
"This is a pretty good picture of the typical American homeowner." Snyder says. "For the average home owner, these rising and falling prices don't really affect them as much as one might think, especially those who are in it for the long haul." Remember, the long hall!
If you fall in the empty nester profile, you may actually be in a good position to sell your larger home, even for less then you think it may be worth, and then invest in a more modest and lower priced home.
Snyder says, "You have to have the right mindset. You have to forget that your neighbor sold his home, which he bought as a fixer upper 20 years ago for a huge profit. The money you save in the lower priced home may well make up for the lower selling price of your current home."
Interest rates today are still traditionally low when you remember the 17% days. and with lower housing prices, a little planning could cause this tempered slump to be a great advantage for many homeowners.
Snyder also pointed out that the economy in the United States has bounced back time and time again and it's normal to have occasional swings. He added, "And so this too shall pass." As we all watch history repeat itself, I predict a great 2008!
For answers to your questions and concerns on the current mortgage options and refinancing, contact Steve Snyder at (925) 287-2236 or visit www.LamorindaHomeLoans.com.
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