Interest Rates Are At 4.79%!!!

The Spring Market is set to take off--- fueled by tempting interest rates, a first time Buyer's credit of $8000 and lower housing prices. Would-be buyers who are waiting for the bottom of the market may miss out of truly getting the deal of a life-time if they wait much longer. Inventory of homes is still large enough for there to be a good selection and most economists think that inflation may rear its ugly head by the end of 2009, forcing up the price of new homes, interest rates, and energy. When there were similarly low interest rates in the past---there was little selection, higher housing prices, no seller cooperation in repairing problems with the homes, and never a direct gift from the government of $8000. Prices in Bristol County, MA are down 18% over a year ago--at least the median for all homes sold is down that much. Sellers are also ready to negotiate on price and are willing to make some improvements to the home, if needed.
Working with a trained Buyer's Agent is extremely important for today's Buyers who need to be aware of all the financing options as well as neighborhood information, especially price-declines and foreclosures. Sellers, likewise, need agents who can keep them aware of changing house values as "days on market" increase. Lenders and their loan officers have categorized towns by their declining ratios and are reluctant to lend loans where the foreclosure rates are high and/or where prices are in a sharp decline. The unemployment rate in area towns is also a factor for lenders. (The unemployment rate in the Greater South Coast area is now upwards of 15%---twice the rate for Massachusetts as a whole.) Buyers who are self-employed will find it much more difficult to get financing. An experienced Buyer's Agent will know the local bankers and lenders as well as the sales information, by neighborhood. So, let us help you find a home, find a lender, and not over-pay for your deal of a life-time. Give us a call at 508.996.6562.

Buyers See Value in Today's Market

Housing is more than an investment. It is a basic need. You have to live somewhere. Why not in a place you can call your own? Where you can change the wall color if you want? Where you can have a cat or dog or children? Where you can plant a garden? I, for one, am tired hearing about the merits of renting over owning a home. It seems to me that renting is just throwing your money away down a deep hole. Buyers need to be careful not to overpay in a down housing market, but the advantages of owning your own home still far out weigh paying rent. "Location" and "condition of property" are the two most important variables for selecting a home. Pick out the town and community that you like best--for the quality of life, closeness to work, school system or other criteria you think most important. Then carefully select you home based on location inside the community and look closely at the condition. Have a thorough home inspection and check out the basics--like whether it is connected to public sewer or age of the septic system--what the quality of the drinking water is--town or well. Also, you are well-advised to also check with the local police to find out what the crime activity has been in the neighborhood and take a look at any sex-offenders, nearby. Of course, you would want to know this information even if you were renting in the neighborhood.
President Obama and the congress have enacted a stimulus bill that includes a $8,000 tax credit for first time homebuyers or for others who have not owned a home for the past 3 years. This is a credit---not a deduction---and it does not need to be paid back. Homes must be purchased before December 31, 2009 to qualify and they must be single family homes where the taxpayer will live. If you have a job and good credit, you may qualify for as little as 3% down under the FHA guidelines. Homes will also need to qualify as to being priced fairly in the down market. So, there are great resources to help new buyers--great selection--and more cooperative sellers, than in the past years. If you are considering purchasing a home this year, give us a call to help you with the process, make sure you have access to all the financing options and most importantly---that you are not over-paying. There should be more and more great, new homes coming on the market as the spring months progress. What a great time to buy a home!