Real Estate Today RADIO covers the benefits and challenges of homeownership, from expert advice on buying and selling, to remodeling and landscaping, to the state of the current market and home financing issues. The show's interactive experience offers listeners an opportunity to exchange information and learn from some of the nation’s most recognized experts on a variety of real estate related topics such as buying and selling homes, obtaining mortgages, seasonal markets, home improvements and more. Guests often include key lawmakers, NAR leadership, staging and remodeling experts, and respected members of the national media.
Saturday, February 19, 2011
Friday, February 11, 2011
Cost of Waiting for Prices to Fall
Many purchasers have been sitting on the sidelines waiting for home prices to hit bottom. They want to guarantee that they are purchasing at the best possible price. Like them, we also believe that prices still have some room to fall in most markets. However, we disagree that waiting is a good financial decision. The buyer should not be concerned about housing prices. They should be concerned about cost.
The cost of a house is made up of the price AND THE INTEREST RATE they will be paying. Two different pieces of news released yesterday highlight this point.
PRICES
The National Association of Realtors (NAR) released their 4th quarter housing research report. In the release, they reported that home sales rose 15.4% in the 4th quarter over the 3rd quarter. They also showed that prices remained stable during the year: The national median existing single-family price was $170,600 in the fourth quarter, up 0.2 percent from $170,300 in the fourth quarter of 2009.
A buyer who delayed a purchase might find solace in the fact that prices have not increased. However, the other news released yesterday paints a different picture.
INTEREST RATES
The Primary Mortgage Market Survey was released by Freddie Mac which showed that the 30 year fixed rate mortgage was at 5.05%. Frank Nothaft, vice president and chief economist of Freddie Mac said: “Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week…As a result, interest rates on a 30-year fixed-rate mortgage rose to the highest level since the last week in April 2010.”
So prices have remained stable but interest rates have risen dramatically in the last 90 days. What does that mean to a buyer looking to purchase a home this year? The price is the same. It just costs more. Let’s show you what the news means:
By sitting on the sidelines for the last 90 days a purchaser lost:
$89.44 a month
$1,073.28 a year
$32,198.40 over the thirty year life of the mortgage
If you buy a $340,000 home, double all these numbers.
Bottom Line Even if prices fall another 10% this year, the cost of a home will increase if interest rates go up more than 1%. Buyers should not worry where prices are going. They should be concerned where costs will be later in the year.
Monday, February 7, 2011
Saturday, February 5, 2011
"It's the start of the buying season," for property in East Tennessee says Steve Albin, of Just Listed Knoxville.com.
"It's the start of the buying season," for property in East Tennessee says Steve Albin, of Just Listed Knoxville.com. He says now is traditionally the best time of the year to buy property, and this season looks no different. As a matter of fact, it's been several years since opportunities for buyers have looked this good.
There are more homes on the market at this time of the year, making it a prime time to close a deal. For buyers, the good news just keeps coming, "says Tina Mounger of Just Listed Knoxville.com. "Lots of people wait until now to put their house on the market because they know the buyers will be there," says Steve Albin of Just Listed Knoxville.com. "Things warm up and it's a nice time to go out and shop for a house." According to Trenna Hamilton of Just Listed Knoxville.com, now the market will favor buyers even more than it has during the last several years. "There's a unique opportunity right now that hasn't existed since 2000," he says. "That is the willingness of sellers to negotiate."
Sellers and home builders are much more willing to make concessions in many areas, including sale price and terms. Now, sellers are going to be especially motivated. Once inventories level off, home prices will begin to climb again and the bargaining power may return to the seller. If you wait too long, you could miss out on some great opportunities. You never know when the market will actually peak out and you don't want to get caught in the upswing, or even worse, a bidding war with other buyers.
In more good news, some areas are still appreciating at a steady pace, making it an ideal time to invest. "Real estate professionals say the important thing to remember about real estate is that it's local, and looking at national statistics can sometimes be misleading. In other words, just because the sky seems to be falling across the nation doesn't mean there aren't areas that are still stable".
JustListedKnoxville.com Real Estate Team affords you the luxury and helps to insure "Your Home, Your Family, Your Investment, Our Priority" also a Final word. Please note that we do not provide a one time search service but rather an ongoing client/consultant relationship, Services Include: Personal advocacy for relocation , home mortgage approval, title and legal document preparation, home marketing assistance, home inspection and appraisal coordination, household goods management, referral management, destination home buying counseling, home warranties and more all this for individuals.
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