Good grief, everyone! This morning as I lay in bed sick with the flu, my head foggy, my voice crackly and incapable if doing much more than watching the news, I hear more doomsday about the real estate market here in Minneapolis, “Home Prices to Drop 10%-20%”. This gloomy tidbit will more inhibit the market than the reality! Buyers see this and say, “Oh, I should wait until it drops again before I buy.” If I were a buyer, I would probably feel the same way. Mayb there are reasons why to buy now.
However, let’s take a look at a reliable source of information, The National Association of Realtors, gleans information directly from the marketplace itself, as opposed to the personal views of a news station exec that is trying to attract more viewers and further line their own pockets.
Yes, it has slowed down. Yes, it’s tough for sellers to sell unless their homes are priced at the low range of the scale. And yes, the numbers show a decline in some areas of housing.
Why would a buyer not wait for the drop they predict? Here’s why:
1. Interest rates are still in the 6% ranges. (I was in real estate years ago when interest rates climbed to 21% for a short period).
2. 100% financing still available. See Ken Horst, mortgage broker for details.
3. More inventory to choose from than ever.
4. Many anxious sellers willing to offer “extras” with an acceptable offer (personal property, pay points and/or closing costs and flexible closing date).
5. The buyer may need (or want) to move, a simple fact that drives the market at this time.
My last two blog entries have been so serious. Next time, I’ll get back to my CookingUpRealEstate theme; hearth, home, real estate, great food, great recipes.
Be well.
Jessie
1 comment:
Thanks for informative and helpful post, obviously in your blog everything is good.If you post informative comments on blogs there is always the chance that actual humans will click through.
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