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A Buyer's Market: Why the Trend Has Changed, And When To Act
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Added: 09/18/2006
Type: Summary
Viewed: 438 time(s)
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A Buyer's Market: Why the Trend Has Changed, And When To Act
As interest rates plummeted in early 2001, the real estate market began an ascent where appreciation rates exceeded 100% over the course of five years, and the initial value of new homes sold at record highs.
Now, in September 2006, where the median home in the U.S. costs approximately $227,500, up from $139,700 in 2001, the market is coming back to equilibrium. In fact with the real estate speculators dumping their investments, builders constructing massive developments on speculation, and interest rates cooling, the market has again become conducive to buyers.
Interest rates are now driving up the monthly mortgage cost on adjustable rate mortgages, the typical finance method investors use to purchase rental properties, ultimately increasing the cost of rent nationally by 5.3% just this year (double that of last year’s increase). Just as the market swayed in favor of the buyer, there is no assurance of how long the environment will stay positive.
The above statistics are becoming increasingly more available and publicized. Investors with ARM mortgages are deciding whether to get out from under their investment, or better yet fix their rate with a refinance and keep their investment working for them. Those considering the purchase of a new home are walking into an enormous home inventory as well as the last days of the low interest rate mortgage.
With the unusually large number of unsold homes lingering on the market, homeowners attempting to sell are becoming increasingly more willing to negotiate their selling price. David Bayer, president of PersonalHomeLoanMortgages.com suggests “If you’re looking to refinance and stabilize your mortgage rate, or if this is your first time buying, now is the time to act.” “The current real estate market is overcompensating to the large housing inventory; self correction is only a matter of time.” Advice to consider given that his company is now the leader in regionalized lender searches, radically transforming the way mortgages are brokered.
Resources like http://PersonalHomeLoanMortgages.com [ __title__ PersonalHomeLoanMortgages.com] drastically increase buyers’ confidence. The site provides specific information on mortgage fees, how APRs are specific to each buyer, and ultimately facilitates the buyer-lender match process. The site naviscreens, finding a prescreened lender within your vicinity. Naviscreening increases your priority as a name and face to a local lender, drastically reducing the likelihood of fraudulent behavior characterized by distanced transactions. Local lenders also have a better pulse on your area’s market. They are familiar with regional concerns; relating better to buyers, and are more likely to consider individual circumstances. This revolutionary naviscreen system is timely, accurate, and site specific. |
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