This Is The Bottom #2
Now I am talking home prices. If you go back to my blog post dated January 22, 2008 (See it here.), you will see I called the lows for mortgage rates. Focus here is on home prices which are now at the bottom. That's right, only up from here. Of course, rates are going up as well. Real estate is local. Certain areas did not show the type of decline that is seen in the media. Sure prices came down, but many good neighborhoods, those with good schools, amenities, and lots to offer residents in terms of sports and recreation, are stablized and from here forward will begin the continuation of home price appreciation.
What's happening? Sellers have had enough. We live in a very conservative part of the country and therefore did not have the huge appreciation that is so talked about in the media. Therefore, no huge decline. Sellers know their properties are worth more than what the current market will bring so they decide to simply not sell. Many properties are being rented and most are being done with a lease option that allows the renter to purchase the home at a future date based on today's prices.
As for mortgage rates, the bottom may have passed but I am still seeing 6.375% on 30 year fixed and FHA 30 year fixed. Going up? Yes. Are they high, you would be crazy or have been living in a cave if you think so.
What this means is future homeowners have the best opportunity right now to get in while rates are still low and home prices are down as low as they are going to go. So if you are still sitting on that fence and haven't decided whether to get off of it yet, maybe you can get one of your friends to push you off. You will thank them later.
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