“Home Prices, If You are Waiting for Them to Drop, You May Wait a Long Time!”
It doesn’t take an economist to understand that home values are at the lowest level that they have been at for years. It doesn’t take a fortuneteller to tell you that interest rates are at levels that haven’t been seen in decades.
That means that all of us need to encourage anyone and everyone that has ever considered buying a home, that the time is now.
Home values will go up, I guarantee it! Mortgage rates will go up, I guarantee it!
A past client of mine, called me a few days ago, wanting me to call her friend to discuss getting her prequalified for a mortgage. She told me that she encouraged her to call me a few times, but she has never made the call. I told her I would call her
I called Pam and actually got to speak to her. She seemed a little annoyed, in the beginning of the conversation. It was clear to me that her friend didn’t let her know, I would be calling.
After a few minutes of speaking, Pam got engaged in the conversation and we discussed the possibility of buying a home. Initially she told me that she couldn’t afford to buy a home. As the conversation went along, she told me that she was making $4,000 per month income, had a nice chunk of saving and retirement account and was paying $1,045 rent, for a two bedroom apartment.
I went through what size mortgage she could get, for the same $1,045. Of course at this point I could only estimate monthly homeowner, property taxes and mortgage insurance.
She admitted she was afraid, she secretly read about owning, but most of the articles made her feel she would not be able to buy or she would lose her home if she bought one. She told me that her parents and friends encouraged her, but she was afraid.
I prepared a preapproval letter for her, referred her to a Realtor, Home inspector, Insurance Agent, Attorney and Mover. She will make an amazing homeowner.
All of us need to let folks know, there is no need to be afraid and if you need me to talk to any of your clients about a mortgage, let me know.
Buying a Home Won't Get Much Cheaper
By Les Christie
Buying a home may never get any cheaper than this. Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market.
With home prices down 34% nationally since 2006 and mortgage rates at historic lows, homes have never been more affordable -- but it won't stay this way for much longer.
Stuart Hoffman, chief economist for PNC Financial Services, said he expects home prices to flatten out by the third quarter and start climbing by next year.
A number of factors will help bolster the housing market, he said, including a decline in the number of foreclosures and continued job growth. In addition, homebuyers will have better access to mortgages as they get their finances in order and improve their credit scores.
"This is a strong indicator that we will start seeing home price indexes, like the S&P/Case-Shiller, start to report home price increases this summer," he said.
Prospective homebuyers who've been sitting on the fence shouldn't worry if they aren't quite ready to make the leap. Analysts are predicting that the initial price gains will be modest, at least, in most markets.
Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.