BUY a home or not to buy is the question? There is a lot of negativity in the media about how bad the real estate market is. Acording to NAR Chief Economist, Mr. Lawrence Yun, nearly half of the Country experienced a price increase.
While everyone is pointing fingers on who's fault it was for us getting into this perdicament, the real estate industry is still going and is a major player in this Country's economy. Some say that the Feds cutting the rates like what was done in 2001 will put us back into the same position. I would have to disgree with that. While reading another article from Mr. Yun, Mr. Yun quoted Abraham Lincoln - fool me once, shame on you. Fool me twice, shame on me. It will be impossible to part global capital providers' money with another foolish investment.
Buying a home in the Searcy, Arkansas market place, which includes other cities like Bald Knob, Judsonia, Kensett, Beebe, Rose Bud, Romance and Pangburn, is well worth it. Our market has not seen the upset that the rest of the nation has felt. Yes, we have had a slow market the last quarter of 2007 and a slow start to 2008 but it appears the markets are stable and with the lower interest rates may cause the "fence riders" or "just lookers" to go ahead and sign a contract. For an example, you can purchase a $125,000 at a 6% interest rate locked in for 30 years, the principle and interest payment will only be $749.44 per month. If you are not interested in this price, your payment will be $6.00 per month for each $1,000 you borrow when you have a 30 year loan at a 6% interest rate. So, if you borrow $60,000 your payment calculation will be 60 x $6 which would equal $360.00 per month.
One of the final statements Mr. Yun made in one of his articles sums it all up. He states "Finally, let me paraphrase Warren Buffet's investment philosophy: when everyone is greedy, be scared and when everyone is scared, be brave. Now, I am not an investment counselor and I do not encourage people to buy simply based on this logic. Rather, if people have the financial capacity and are looking for a home for the long haul, the fear factor should be put aside. Current situations in many local markets present a golden opportunity in attaining the American Dream with historically low interest rates."
For more information and questions, feel free to contact Larry DeGroat, ABR, CRS, GRI, Broker at 501-268-8489 or by e-mail at Larry@Searcy4Sale.com.