Occasionaly our box at the office gets something that is very useful. Yesterday was such a day, we had from one of the local Mortgage Brokers offices. It was a CD and a Brochure from Steve Harney the Realtor and Trainer from New York. While I have been a little too busy to get through the CD, the brochure has some really interesting points to help get buyers off the fence in this market.
He noted that nationally home prices our down 10.9% over the past few month. What was interesting is the fact that in the past 3-5 years homes have gone up much more than that. He used Miami as an example, before it dropped 15% it had peaked at an 83% increase in prices. That is still a great return on investment if the investment had been held.
He points out that we need to know what our peak percentage was over the rate that homes have dropped in your market. He also points out that the actual cost of a home is the price plus the interest rate of the mortgage. So even if homes in your area were to continue to decline up to another 8% in the next six months, but interest rates go up just 1%, that home is more expensive six months from now than it is right now.
This was information that I thought was extremely helpful to us in our local market, I hope that this may help someone out there.