THEN VS. NOW

By
Real Estate Agent with St Pete Realty

This wasn't the only bad market for real estate.  Back in 1987 and 1988, I worked for a large real estate firm in Mount Vernon which is part of S. Alexandria, Virginia.  The interest rates kept going up and up and finally almost as high as 18%!  We thought we would never see 10% again.  Homes, of course, were very difficult to sell, but one big difference -- we had the investor market!  Now, Northern Virginia was part of the Wash. D.C. /Maryland corridor and we had people constantly coming and going.  We had to do alot of creative financing.  All VA and FHA loans were assumable with no qualifications and some had interest rates as low as 4.5 to 5% interest rates.  Many sellers allowed these assumptions and held second mortgages with attractive 12% interest.  Those who did not have those kind of mortgages, did alot of wrap-around mortgages.  Some how it all seemed to work out and we all survived a terrible market, and eventually the interest rates came down and everyone refinanced.  Now is a different story.  With the corruption of the mortgage industry, many homes are in foreclosure.  Very sad for the sellers, but, turn it around, and it is best time to BUY.  Interest rates are still very low!  There are so many houses to choose from, and so many good buys.  Sellers, on the other hand, if they price their home fairly and not expect what they could have sold for in 2005, will be able to sell, and take advantage of the good buys on the other side.  Hope this advice  today will help you if you are in that situation.  Our company is doing very well during these tough times and there is a reason, so please do not hesitate to call me.

Comments (3)

Anne Hensel
South Beaches Real Estate Professionals - Saint Petersburg, FL
Realtor - Broker - St. Pete Beach, Treasure Island

Wohhh Diana this is a great post. many of the Realtors that work today have no idea what it used to be like.

Appreciate you insideview. This knowledge give you an important advantage in toady's real estate world

experience in real Estate

 

 

Sep 20, 2008 05:48 AM
Steve Vennemann-Hennepin-Dakota-Anoka contract for deed property-Ramsey-MN
BoardWalk Premier Realty INC - White Bear Lake, MN

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Welcome to active rain from http://www.mnlakeplace.com this site is a great site to learn from and interact with other Real Estate agents/Broker. 

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Sep 22, 2008 01:46 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

We invite you back to ActiveRain!

    Much has changed since your last visit to ActiveRain.  I encourage you to take another look at the website. 

    Surf some blogs, leave some comments.  Better yet, post a Blog.

    Best to you!

Nov 24, 2015 11:49 AM