We have Hit BOTTOM!

By
Real Estate Agent with Cactus Mountain Properties, LLC

This is how I see it. . .This is the time to seriously consider making a purchase.  The Feds are due to lower the prime interest rate on the 30th of this month to 5.25%.  It will take a couple of weeks for this change to effect the bond market which will in turn lower home mortgage rates.  The government is doing this to head off a major recession and stop the decline of home values.  When this rate is established the price of houses will begin to increase in value once again because monthly payments will become more affordable.  Already home builders in the Valley have discontinued their buyer incentive programs and have slightly raised the prices of their newly released models.  I hope you see where I'm going with this.  Now is the time to act.  While you still have some bargaining power as a buyer, I would consider making at least a $20K offer less than list price on a certain property.  I know you really like this home and that you would be happy with the purchase once you got moved in.  (This was addressed to my non-committal buyer who is waiting for the prime rock bottom time to buy) You will be on your way to building equity!

Let me know what you think out there in AR world!

Posted by

Barb Merrill Works 4 U!

Comments (6)

Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC
Barbara,
From your mouth to the ears of buyers in my area!  I hope you are right.
Jan 16, 2008 12:25 PM
Christina Williams. REALTOR® TN property search & local insights
First Realty Company - Crossville, TN
Sounds like very good advice! Makes so much sense to purchase now before the rates are lowered. Thanks for tip
Jan 16, 2008 12:32 PM
Anonymous
Brian P.

As of January 08, the bottom has not hit.  No way.  There is so much financial turmoil in the markets which will further pressure prices downward.  Do not expect the bottom to be an exact date, rather a "period of time,"  for example six months.

Places like Florida, for example, have tons of new construction units which will never be delivered.  They will eventually be discounted and /or auctioned off.  This hasn't happened yet.

I invest in Chicago and California.  In Chicago, prices are expected to botom out the end of 08.  We'll see.  I don't have any crystal ball, yet I don't see the multitude of foreclosures being absorbed yet, so I have to say bottom is not here yet.

Jan 17, 2008 11:38 AM
#3
Jeffrey Helton
Real Living Gateway Realtors - Ridgewood, NJ
Real Living Gateway Realtors
Elections, Elections, Elections  Until you get find out who your  new boss is you will not find much of a change.  Until then it is a slow and painful correction.   Anyway, what ever the government does today will not really return any rewards for 1-2 years from the time it was implemented.  Until then people still have to sell and buy homes.  I won't even try to pick a bottom and I would never suggest anyone to so. Buy a home when it is right for you and don't expect the instant appreciations that we saw in the last few years.
Jan 17, 2008 01:30 PM
Joseph Grabowski
Keller Williams Preferred Real Estate - Yardley, PA
REALTOR - 4saleinbucks.com

I don't see a rise in housing prices until after 2010.

 

 joe

Bucks County Real Estate 

Bucks County MLS Homes Search 

Jan 17, 2008 04:05 PM
Sandra Paulow
Aspen Properties, Inc. - Pinetop Lakeside, AZ
REALTOR, Associate Broker, GRI, SFR
I hope it isn't 2010 before we see a correction but I fear you are right.  The only hope right now is to counter the negative news and encourage buyers that this is the time to buy.  I hate to say it but if I were a seller, if I didn't have to sell right now I certainly wouldn't try.  Recently a local newspaper report said there is a five year inventory in Arizona right now.  In Show Low, Arizona right now there are over 50 subdivisions under way, another 30 some are on the drawing board but haven't made it to P & Z yet.  Add to that the 1620 Residential Resales on the market in our MLS right now, I can believe there is a five year inventory.  Keep in mind we are a small rural community, not a major metropolitan area, that means there are tons of homes out there that people want or need to sell.  I recently did a rather general search for a prospect and with just some basic criteria in the search I can up with almost 200 listings that fit their original description.  I had to do some serious narrowing to get the search down to a manageable level. So...if I were a buyer and I were a buyer and I wanted a nice home in the White Mountains of Arizona, now is surely when I would be looking.  Prices are pretty stable here although lower than they have been in a long time, so come on up and pick your home, there is definitely one to suit!  
Jan 19, 2008 03:10 AM

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