Stupid, Broke, or Just Don't Want To Move!!!
I would say these are the three main reasons that someone would have if they are deciding NOT to purchase a new property! Of course there are other reasons out there I'm sure, but if you have been looking, wanting to, and ready THIS IS THE TIME!!! I say this because of two main reasons.
Reason One: Real Estate Prices and Amount of Available Property
The safe bet is that in the last year or two the value of property in your area has dropped anywhere from as low as 2-5% in places like Summit County, Colorado all the way down to 20-35% in some of the worst hit areas like Florida, California, and Las Vegas. The question to ask yourself is, if you are going to buy something when is it better to buy? When prices are low are high??? Low of course. One of your biggest troubles might just be choosing between the top 3 that you like? And that's an okay problem to have(from the buyers perspective).
Reason Two: Amazingly Low Interest Rates
Not only is the price of the home you're buying low but the amount of interest you have to pay on the loan is quite a bit of savings as well! The national average for a 30-year fixed rate loan is around 5%. This is around 1 to 1.5% less then the past year. This is the lowest rate in the past 40 years. We are now starting to hear reports from some of our local mortgage companies that rates are on the rise! What that means for you is that if you decide to wait one more year you could be paying more for the same loan you would have received now. This chart below from Mortgage-X.com shows the last 18 years of interest rate.
If you want to search for your perfect mountain property, give any of our agents at Ten Peaks Sotheby's International Realty a call to help you with your Colorado Mountain Real Estate Search.
Originally Crerated at: http://tenpeakssothebysrealty.com/real_estate_blog/view/2359/stupid__broke__or_just_don_t_want_to_move___
Laura Russette
Office Administrator
970.453.0550 Office
970.453.4484 Fax
Email: TenPeaks@SothebysRealty.com
Website: www.TenPeaksSothebysRealty.com
You are right there are great opportunities out there if you are ready to buy. The only down side I can see it that if the price of the home you want has dropped so has the value of the home you have to sell. But for those buyers who do not have to sell a home first it must be like looking at a delicious buffet.
There are still a lot of doomsayers warning the public about the giant foreclosure pipeline, the crash in jobs, and the spikes in interest rates. I have some interesting discussion with them, but I think the fundamentals are just as you said. This is a good time to get into the market. I posted earlier today about falling inventories in Santa Rosa, CA. It's pretty dramatic.