Now may be the best time to buy or sell a home.  If you are in the market, here are some facts and opinions to consider about the trends for real estate in 2009.

1. Loans will become more costly:  Economists concur that there will be an upward move in rates.  Rising interest rates make borrowing more expensive and qualifying more difficult.   “I don’t think there is any way we can avoid higher interest rates, especially higher mortgage rates,” said John Tuccillo, a highly regarded housing consultant and former NAR economist. “The federalization of Fannie and Freddie will shrink the secondary market and make it harder to get a mortgage.”
2. If the economy picks up, so will the number of listings.  Seller’s who have been waiting for better times, will put their homes on the market.  Ted Jones, chief economist for Stewart Title, said not only will rates rise but he is also concerned that “pent-up sellers” will re-enter the market once sales activity improves.  “There are a lot of people who would put their home on the market if they felt they could sell it,” Jones said. “We just don’t know exactly how many of them are out there. When they do plan to sell it will add to our inventories. So, we may run into a false bottom before we find the real one.”

If you believe that interest rates are likely to increase, and any improvement in the ecomony will release pent up seller demand, then NOW is the best time to buy or sell.   

Seller Tip:  Remember that PRICE is the single, largest factor that generates showings and offers. 

Buyer Tip:  Stop waiting.  Over the long run, you will make far more money from a low, 30 year interest rate, than you will from possible price reductions.

Thank you for visiting Why6Percent.  We are here to help you boost your web appeal, as well as your curb appeal.  Let us know if we can help you.