This real estate market is waiting for a reason to do something. The reason has arrived in interest rates. Deals are starting in our market and they are all price points. There is a pent up demand and if the financing comes and stays the property is going to sell. We are at a sweet spot where values are coming down to meet the bids. Seasonally we are where sellers give in. If the Fed gives the money Fannie and Freddie to put out at 4.5 % look out. It won't cost the tax payers anything. The Fed can borrow almost 2 points lower.
This will cause the mortgages on the property sold to be closed out and the institution will can get their money out to pay off the mortgages to the extend of the sale.
I blogged on Nov.16,2008, If there is a solution, I think this is it, tell me what you think! about this process the government could do.
They are going to do it!
The point is to have fate and get your self ready for a different real estate market! Even if you think it is too good to be true. I have been there before. It is not supposed to make total sense. There will be variables that will surface that we are not aware of now.
See you on the Dark side of the Moon!
Richard
View my new homes for sale
Richard: I don't believe all these government measures will have an immediate impact. The smartest peole in real estate have gone back to the basics because they've seen these downturns before. If things change, it's important that we change our game plan.
Paul:
If the mortgages are granted at 4.5 % the market buys. We are seeing it already with rates moving in the free market to the low 5's. Agents who line up their inventory and get ready will make a lot of money. That is the way it works. Maybe in some areas that are loaded with forclosures it will take a while to get thought the inventory, but by us (Bergen County New Jersey) we don' t have the same levels of inventory as other areas of the country.
Richard
There are some great opportunities there now, but I think most buyers are just afraid because the media does not explain any of the details. They just pedal fear.
Jim :
I think the media dosen't even have a handle on the inside of the matter. Dramma sells and the media loves the dark side.
Richard