Real Estate News
JUMPING INTO THE BUYER'S MARKET
With bargain basement prices and foreclosures galore, if you are in good financial shape this is the time to buy in Arizona. As the saying goes "Buy LOW and sell HIGH", those in a poised position can take full advantage.
What should we expect in the next few months?
According to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS, a most reliable source that should be considered worthy of acceptance over various media sources, claims that existing-home sales are expected to hold fairly steady as indicated by pending sales activity, and then rise later in the year and continue to improve in 2009.
Lawrence Yun, NAR chief economist, educated expert in economics unlike opinionated media opportunists, says there is a pull and tug exerting itself on the market. "On the one hand, we have a pent-up demand from the 4 million jobs added to our economy over the past 2 years of sales decline," he says. "On the other, consumers continue to wait for additional signs of market stabilization. There are more people with financial capacity now than in 2005, but many are trying to market-time their purchase. As a result, the exact timing and the strenght of a home sales recovery is a bit uncertain. A meaningful recovery in existing-home sales could occur as early as this spring, or it may be further delayed toward late 2008."
In the final analysis, Yun says, "Although there could be some minor slippage in the first quarter, existing-home sales should hold a narrow range before trending UP."
This is still good advise going into 2008, so I am keeping this posted. . .
Not long ago, lenders were handing out mortgages to anyone with a phone # and a pulse. . .
as stated by Sandra Block of USA Today . . .
No money down for a down-payment? Not a problem!
Low credit score? Who cares?
Incarcerated? You'll need a place to live when you get out, right?
Those easy-money days are history!
As the mortgage meltdown has spread, lenders are demanding stellar credit and proof of income. Zero-down payment mortgages have completely disappeared.
Which means if you plan to buy a house in 2007, you'll need to put money on the table.
While there are loans available with 5 & 10% down, if you don't have 20% down you will have private mortgage insurance tacked onto your monthly payment.
Any loan over $417,000 is considered a JUMBO loan and that is exactly what it means. It carries a JUMBO interest rate, resulting in JUMBO monthly payments.
Here are some TIPS to help you get ready:
1. Start saving money now. Tie your money up in a 6 month to 1 year CD so you can't touch it. Some of the best CD rates are available from financial institutions that have been hit hardest by the mortgage meltdown.
2. Get out of and stay out of credit card debt. You want to look squeeky clean!
3. Stabilize your income.
The good news is home prices are dropping and real estate analysts aren't expecting a turnaround any time soon. You have time to save up for a down payment and most likely be able to buy more house for the money.
I want to see your dreams come true!
Sincerely,
Barb Merrill
Oh, and by the way. . . if you know of someone who is looking for the personal attention that I provide and is thinking about buying or selling a home, I'd love to help them. So, when you come across these people, just give me a call or email me with their name and number and I'll be happy to follow up and take care of them.
Thanks a million!