My New Blog

It's all over the news.

The market is coming back!!!

We have hit bottom.

Have we? I hope so?

Fact is, summers are always busy, so this may just be a glitch.

But I can tell you for sure. ALL of the mortgage and real estate people I know are busy busy busy.

Many of us have been thru this a few times. We all agree that we have definitely hit bottom on the under 400k market.

Higher priced homes are still on the fence.

Many customers ask about the foreclosure moratorium, and the loan mods that are going bad. They think this will reflood the market and cause further price deterioration.

No way!!

There is a waiting list and multiple offers on every property under 400k.

These properties sell for over asking. I saw one last month that sold for 100,000 over asking, and it had 32 offers!!!! (yes it appraised)

Maybe the 400k plus market might take another hit but not the sub 400k.

And even if it does who cares, why wait to save a tiny 10k more on the price if it drops a bit more.

The risk is not worth loosing the guaranteed $8,000 government tax credit, and the FREE mortgage payment protection offered by Realtors. Not to mention what if rates go up, which they WILL. Inflation is knocking at the door.

When rates go up and buyers need to take a 6% instead of 5%, they will pay 10 times more in interest over the life of the loan than what they "saved" by waiting for the 2nd wave of foreclosures.

So what do we do?

Buy now is what I do, and I tell my clients to do.

There is a reason EVERY investor with millions of dollars is buying these homes now. They are experts who have seen this before and they know now is the time.

Just like in the stock market if you try to time the bottom or top of the market, by the time you think its there, you missed it.