MY Thoughts on the Current Market (as it applies to my market).

By
Real Estate Agent with Century 21 Alliance

With all of the negative media it seems as though some people just need to hear a realistic perspective.  Here are my thoughts:

First Time Buyers: Buying your first home is possible with more affordable prices, lower interest rates, and recent federal tax credits offering up to $7,500 assistance at tax time.  With FHA lending you may be able to purchase a home with as little as 3.5% down. It is time to invest in your own future.

Move Up Buyers: A 10% downward depreciation in home values equates to extra savings for you.  For example, if you were to sell your home two years ago for $200,000 and buy a home for $400,000 you would be making a $200,000 upgrade.  If prices adjusted just 10% then your home would be $180,000 while the home you were buying would now be $360,000, or an upgrade of $180,000.  That is a savings of $20,000!

Downsizing Sellers:  Are you ready to scale back your mortgage, taxes, & utility bills?  Then you may be ready to downsize.  Many sellers are waiting for their homes to appreciate in value again.  Waiting for the market to rebound may backfire.  The expenses that you continue to incur on your home may negate any profit that you may make on the future sale.  You must also consider that as your value increases so does the cost of the home that you will move to and we have no idea what the interest rates will be in the years to come.

We should be taking advantage of this current market, no one knows when we will see this combination of low rates, affordable prices, & a surplus of homes to choose from.

Turn off the TV and take a look at your personal situation to see if the time is right for you to make a move.

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By the way, I will be sending something very similar to my sphere...I would appreciate your input.

 

Best Regards,

Kathy Manganello

 

Comments (10)

Diane Parker
Coldwell Banker Sea Coast Realty - Wilmington, NC

Good points.  Buyers do need to take advantage of this current market.

Feb 11, 2009 05:01 AM
Lisa Magee
Keller Williams Realty - Boiling Springs, SC

I personally think that your thoughts are very accurate and it's all market specific.  Keeping our local market accurately aware is a great thing.  Starting with your sphere is also key to keeping everyone you know in the loop.  Now is a great time to buy with the tax credit, low rates, etc.  I've done something similar with my local market statistics and encouraged everyone to stop believing what the news media is telling them.  RE markets are VERY localized and the national media is not locally accurate.  Thanks for your thoughts!  Have a GREAT day!

Feb 11, 2009 05:04 AM
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

This is a Buyer's Market & there's no reason to not tap into it: There are always going to be people out there that NEED to move. In addition those that simply want to now can if they avail themselves of some of the lower interest rates out there. It's agreat time to buy a home. (I just did)

Feb 11, 2009 05:05 AM
Mark MacKenzie
Phoenix, AZ

Kathleen,

You bring up really good points.  The problem stems from the lack of first time home buyers and investors entering the market.  Until this happens, the real estate "food chain" will remain in gridlock.

I understand the reluctance of first time home buyers as property values are going down and job losses are rising.  I can't say that I blame them unfortunately.

Feb 11, 2009 05:14 AM
Toula Rosebrock
Diane Turton, Realtors, Forked River, NJ - Lacey Township, NJ
Broker/Sales Associate, Realtor, Lacey Township,

Hi Kathleen:

How are things going in Cape May county...I've been busy here in Ocean County.

It's a great time to buy!  If my money wasn't tied up in my 401K, I would be buying also!

ToulaRosebrock.com

Feb 11, 2009 06:13 AM
Tom Giansante
The Title Company of Jersey - Wildwood, NJ

Kathleen,   Activity has begun to pick up!  There is a pulse out there right now in Cape May County.  We are seeing contracts in the primary market in more than one area of the county.  From my perspective (title), we are seeing more than might be expected based on all the negative news. 

 

 

 

Feb 11, 2009 12:48 PM
J Perrin Cornell
Coldwell Banker Cascade Real Estate - Wenatchee, WA
Broker, ABR, VAMRES

I agree!

First quarter '09 thanks to ground work laid last November and December and also to the Buffini Blits is set to become my best first quarter EVER.

"If all you have is lemons you make lemonade"

 

Feb 11, 2009 11:40 PM
Kathleen Harron
Century 21 Alliance - Wildwood Crest, NJ

Thanks all for responding.  I don't want to see anyone that may be at risk of losing their job buy a home right now but the reality is...there are plenty of people with stable jobs who have been scared to death by the national media. 

I agree that we need the first time buyers to free up the gridlock but we also need those move up buyers to understand that people are not going to pay more than market value just so they can move up.  These people need to understand that they are winning in this market even if they do take a hit on their home.

Toula..I am glad to hear Ocean County is doing well.  I think Cape may County will do well this year and I am never too busy for any of your referrals!

Tom,  Thanks for commenting, I always value your input and if you see things picking up in your office then I know we are heading in the right direction!

Perrin- The Blitz has definately motivated me!

Kathy

Feb 12, 2009 02:34 AM
Nancy Pav
Century 21 Redwood Realty - Ashburn, VA
Nancy Pav, Your "GottaHave" Realtor

Kathy-you've made some very good points there.  I think that will be an excellent piece to send to sphere.  And it looks as if the 1st time buyers credit will be $8000 soon.

Feb 14, 2009 02:18 AM
Kathleen Harron
Century 21 Alliance - Wildwood Crest, NJ

I left out my "Struggling Homeowners" section from this post. Inmy letter to my sphere I did includethis section to let people know that I am not just here to help when they need to buy or sell a home but to lead them in the right direction if they are having a difficult time with their home.  I asked that they call me if they are having a tough time making their payments so that I can lead them in the right direction.  I have also included that they should not let embarrasment get in the way and said that all conversations will be held in the strictest confidence.

Of course I added that I am here to be their "trusted advisor". I hope that in my follow up calls people will actually talk to me if they are having a hard time.  I will have resourses available should the topic come up.

Hopefully they will think about making the 1st time buyers credit non-repayable to all of those buyers that took advantage of it in 2008! (It would be nice for my son who just bought a home in Sept.)

See you in Baltimore!

Kathy

Feb 14, 2009 11:34 PM