The house of cards built over the preceding years of unprecedented home appreciation has crumbled. It's demise has created some incredible deals in my market.
The run away spending that got so many of us caught up in thinking we can "have it all." has landed countless homeowners in a compromised position leaving no way out, but to walk away from the mortgage*.
Banks are overwhelmed with this new way of thinking and are dumping their REO (bank owned/foreclosed) inventory on the market at way below market value, giving buyers who are ready, to get some awesome deals.
Homes that just one year ago were selling above 300,000 are now below $200,000 as prices continue to decline.
Have we hit bottom? I get tired of this question. If I knew the answer to that one, I'd be rich and retired. Unfortunately, I have my best guess and that would be not yet, but there are great values and low interest rates NOW. Who knows what the future will bring?
I have a closing next week and my buyer locked his interest rate at 4.875!!! Yippee, skippee. That makes my previously thought of, screaming-deal interest rate of 5.5 pale in comparison.
If you are thinking of getting in on some of the great deals in my market, then you better come to the table with a pre-approval or proof of funds letter in hand, because the really great deals are getting swept up quickly.
If you are a first time home buyer and are not sure where to start, call me and I'll get you going in the right direction.
What are you waiting for...interest rates to drop to 1%?
* If you find yourself unable to make your house payment, contact your lender and seek a loan modification. Your lender should be able to handle this for you. Statistics show that the majority of homeowners who lose their home to foreclosure never contact their bank. Don't let this happen to you.
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No one sold more homes in Del Norte County in 2009, 2010 and 2011--*in units sold and volume--than Fran Gatti. Put Fran to work for you!
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Fran ... thanks for this good post about "House of Cards, Bringing Home Ownership Within Your Reach".
That's well said. We also encourage our customers that if they are thinking of getting in on a great deal, they better get going with home loan pre-approval. That's the first and perhaps most important part of the buying process.
And great deals are being swept up quickly here in the OC, California. Best wishes.
Hi Fran - Love the house of cards comic, and so apropos for many people's spending decisions. Seeing many buyers who have decided they'd rather own than rent for the same monthly payment taking advantage of the low rates and tax credit available to them, definitely finding homeownership is within reach.
Fran, I think that we are at the bottom of interest rates. Even if housing prices still fall for a few more months, interest rates will start climbing in the months to come. Those that lock in these low interest rates now will thanks themselves later.
Fran: I just love your house of cards graphic. Just fabulous. It really tells a very true story. I love the sign, too. Hey... ya wanna buy a bubble ? LOL. Way too many people bought those bubbles... and then a bad thing happened... that house of cards fell down.
As far as interest rates are concerned... I think if they are kept low enough for long enough... folks will finally get off the fence... thinking that any other reason they might have for waiting... just doesn't make sense. Thanks for sharing...