Keller Williams Realty International came out with a great article this week concerning Buyers, and why most are just not willing to pull the trigger on buying a home in today’s market.
I know that activity has made a positve move over the past several weeks. Emails are coming in and the phones are beginning to ring again. Boy….is it a good thing to hear those phones ringing again! This is great information that I wanted to get out to North Georgia Mountain Real Estate Buyer’s and Investors. Whether you are looking to buy in Blue Ridge, Blairsville or Ellijay, I hope that you find this information very useful.
It’s time to get potential home-owners to go ahead and buy in this so-called “buyer’s market”
While today’s market plays to their advantage, buyers, who should be swooping in to make the most of reduced housing costs and favorable interest rates, are sitting by, waiting.
It is up to you, as a competent and informed real estate agent, to mobilize your potential buyers to invest in home ownership now. When the market turns, today’s bargains will be yesterday’s missed opportunities.
While it is conceivable that home prices may drop further, it is likely that these decreased prices will be accompanied by increased financing costs due to rate cuts by the Fed. This means that any money saved on paying less for a house in a few months time will be offset by your client having to pay off their mortgage at a higher interest rate making “playing the waiting game” a waste of time (and very little fun).
This rate increase isn’t just speculation. Just a couple of weeks ago, in early February, the fixed mortgage rate jumped a full half-percent, making it the fastest rate increase in 20 years.
The table below demonstrates how even as home prices may drop, monthly mortgage payments basically stay the same; due to increased interest rates:
Prices decrease by 5% and interest rates increase by 0.5%
Prices decrease by 10% and interest rates increase by 1.0%
|Today||Scenario 1||Scenario 2|
Table: Kadlec, Dan. “Ignore the Headlines!” Time 25 February 2008
Why should your clients spend months in a situation that they want out of when they can begin their new lives in their new home today, with less interest?
If you have any other questions or concerns, or you may be ready buy, I would be proud to be your Friendly, Professional, Enthusiastic, meet your needs Real Estate Agent. You can call me at 706.633.8186, or you may email me at ChadL@KW.com.
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Thanks for coming up on the Porch here on The Front Porch View.