With the constant media negativtiy on all aspects of the economy and housing market it appears that there is is nothing but doom and gloom on the horizon. While there are a great number of areas across the nation that are seeing a sharp decline in market values, there are many only seeing a slight decline or a return to what we know as a "normal" market compared to what we experienced in the "boom" market over the past few years.
You need to peel back the layers of what the media reports and dig deep to find out what the market trends are in your local area to better educate yourself and to be that source of knowledge for today's consumers.
I recently read a Times article published this week written by Dan Kadlec "Ignore The Headlines" that is a must read for home buyers who are still sitting on the fence on whether to buy now or to continue waiting in light of all the recent media negativity. One of the more notable points that Dan made in his article jumped out at me if you're going to wait:
"But let's say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It's time to get serious--before an inevitable rise in interest rates wipes out your advantage. "The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher," says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.
Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today's rate of 5.5%. Monthly principal and interest come to $994.31. Let's say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you'd have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you'd rather not be."
****Information provided by Time Magazine....February 25, 2008...."Right on Your Money" - Dan Kadlec****
Contact Donna Bigda, RE/MAX Alliance Licensed Realtor® in the State of Connecticut at 203-488-1641, ext. 214 to list your property for sale or to purchase a property in Branford, Guilford, Madison, East Haven, New Haven and the rest of shoreline area in New Haven County Connecticut.
If you're thinking about buying a home in Branford CT there are plenty of great buys in today's market and now is one of the best times to buy while interest rates remain low. For more information on Branford CT real estate homes or condos, see Branford CT real estate or sign up today to get access the hottest new listings here Branford CT homes and condos.
Disclaimer: All information provided by this author is strictly an opinion, is not guaranteed, may be based on information collected from several sources, which may or may not be deemed reliable at the time of researching this article and may be time sensitive.
Copyright © 2008 by Donna Bigda, All Rights Reserved ...*Buy Now! "Ignore The Headlines"....Great Times Article*