Wow! What is going on with the real estate market? Some would say it's crashing and others would say it is correcting itself. What is the truth and how do you react? Do you buy? Do you sell? Do you hold? The answer is all of the above...depending on your situation. Like many areas across the United States, yours has probably experienced a significant increase in real estate inventory over the past six to ten months. In most areas, the inventory has increased between 100%-400% in comparison to the same time last year. In fact, in most markets, we are seeing sellers lower the price of their homes as much as 10%-15% just to stay competitive. Is this the right time to buy? If what I've stated above fits the profile of your current real estate market...ABSOLUTELY! Most of us have heard the timeless financial philosophy of BUY LOW, SELL HIGH. Take advantage of the opportunities a buyer's market offers and take the deal! Do your research and make sure you're getting a price that makes sense for you. Make sure you do a comparative analysis on the community/area you are considering making a purchase. Is this the right time to sell? Again, if what I've stated above fits the profile of your current real estate market...IT DEPENDS. If you have to leave then obviously YES is the answer. Interview at least 5 Realtors and make an informed decision. If you are looking to turn a profit on your current home and get into something bigger in the same area...I would say DO YOUR HOMEWORK and make sure you can afford a new mortgage at the higher rates. In many cases, homeowners have a tremendous amount of equity in their home...but even with that, the increased interest rates are likely making it difficult to find an area they wish to live at an affordable price. TALK TO A MORTGAGE BROKER OR LENDER FIRST. Tell them what you would like to do and allow them to tell you what it will take to reach your goals. Do you hold? If you don't have to move and your property values are continuing to edge up...why not? I can't tell you how many times I get calls from people that HAVE TO SELL because they over-extended themselves financially. Don't over-extend yourself. Unless you are extremely certain your income is secure...stay where you are. We will start seeing a major increase in foreclosures because people were wooed by hybrid loans. Many of those loan types are impacted by interest rates. It doesn't take a rocket scientist to figure out that interest rates are rising. DO YOUR HOMEWORK. Know a bit about loans, real estate and housing markets prior to making a decision. There are many books out there about different types of loans and real estate in general. Get educated!!! Real Estate is ever-changing. You must keep well informed to capitalize on the benefits. Not keeping informed could cost you thousands. Sean L. Spencer, Realtor http://www.SeanLSpencer.com |
