Super Low Interest Rates Make It a Great Real Estate Market for Buyers AND Sellers!

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Of course as a real estate agent, other than “hi, hello and how are you” the next most frequently asked thing we hear is “how’s the market doing these days?” That’s why for today’s video blog I wanted to talk about it.

Interest Rates Continue to Beat All Housing Industry Records

Throughout the past many months there has been one very consistent item of big news that seems to be controlling much of our market – and that is interest rates. Chances are you have already heard that interest rates are at their all time historic lows, making it more affordable than ever before to purchase and own a home. For homeowners with existing mortgages the low rates are facilitating significant savings when the mortgage is refinanced.

Buyers Can Afford A Lot More House for the Same Amount of Money

Another factor that low interest rates brings into play has to do with ‘how much house’ you can afford. What might have cost a monthly payment of $2500 just a few years ago may easily cost just $2000 depending on the property, terms and rates. With this added buying power, buyers are out there eager to lock in the amazing rates still available.

Sellers Enjoying Less Selling Competition on the Market

This is exactly what makes it a great time to sell. With so many buyers seeking the perfect home, particularly at the cusp of our 2012 holiday season, any inventory that is out there is scrutinized and often considered by buyers. Fewer available homes on the market make it very ideal for sellers since buyers want to get in before the holidays. Another phenomenon seen by sellers with show-ready homes that are priced right and in great locations and is one of multiple offers and even bidding wars.

Conditions Expected to Stay the Same for At Least a Few More Months

The news is that the government will hold the base rate down until at least the middle or end of 2013 – if not a bit longer. One school of thought is that the elections may have an adverse effect on our housing market but it is too soon to tell. It is important to note that even if there were a resultant outcome on the housing market from the election, the soonest we would see any of it materialize would be in the springtime of next year.

This is what makes now an excellent time to buy and also an excellent time to sell. Very rarely do we see a favorable market for both sides of the fence but today that is the case and it’s a great opportunity to pursue!
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If you’d like to explore your options in today’s real estate market, whether to list your home or find the perfect new home – I invite you to contact us today! We look forward to making your real estate goals become a reality!