 |
|
Foreclosures In The News (Part II)
Last month I highlighted how low foreclosures are actually in our area due to the stable employment of military, government workers and defense contractors. The media tends to hype the foreclosure problem nationwide without sharing some other interesting facts. About 33% of the country owns their home outright with no mortgage at all. Of the remaining 67% of homes that have mortgages, about 6% of those are experiencing trouble paying their mortgage and not all of those will go into foreclosure. As usual, the media is refusing to tell the whole story to make the problem sound really worse than it is.
There is still very good news for real estate though, the Federal Reserve Board cut rates raise interest rates again recently with likely more cuts to follow. Average 30-year fixed mortgage rates are still around 5.625%; 15-year mortgages are slightly less at 5.375%. I have seen refinance rates around 5% lately. Whether you are thinking of buying a home or refinancing your existing home, just drop me a line. I would be happy to refer you to an excellent loan officer!
Please remember you can preview all of the homes listed for sale in the area for FREE on my website just by clicking on the "Homes For Sale" button on the right and click on "Search Listings" option to gain total access to our real estate market. You can also visit my website directly at www.House4U.com.
If you think you are ready to start your home search, I have access to an excellent program that can automatically send you properties via e-mail meeting your housing requirements. Just click on the "E-mail Home Search" button to the right and I will be happy to help get you started.
Is It Time To Consider Selling To Move Up To A Larger Home?
If you are in need of a larger home and wish to move up, this is an excellent time to consider doing this as spring approaches. Even though homes are selling at a slower pace today than in past years, homes are still selling.
Even if the homes in your neighborhood are likely to be selling for less today than a couple years ago, it still makes since to sell and move up. Homes in the higher price ranges have also come down in price and can be purchases at even better prices today and in many cases sellers will assist in closing costs too.
The reality is the Federal Reserve is being very aggressive with interest rate cuts and the stimulus package provided by the Federal Government is about to kick in. This will overheat the economy in the next 6-18 months. Inevitably, this is going to force the Fed to raise interest rates higher in the coming months. In the long run, it will likely cost you more money to move later than it will today.
If you want to discuss this subject further, please contact me today at 757-287-3400 or shoot me an e-mail at Jorge@House4U.com.
Sellers Who Need To Move Quickly Should Consider Property Management Many sellers are finding themselves in a position where they have to move, but have not been able to sell their home. This is especially true of those who need to transfer out of the area. These sellers need to seriously consider professionally property management to help cover their mortgage payment until the market conditions are more favorable.
It makes little sense to slash one's home price to make a quick sale when property management is a viable option. Under the current market conditions in our area, renters are having to pay a higher rental rates which in many cases is enough to cover a seller's mortgage payment. Due to tax benefits, even a small monthly loss can be a profitable situation.
In addition to to my residential sale business, I also own and operate my own professional property management business. Many of my clients started off under this same scenario and turned their personal home into an excellent investment property.
In fact, several of my financially savvy clients have found this to be an excellent way to build long-term wealth and have purchased additional rentals over the years. Of all the properties I currently manage, about a 33% have been under my management for over 10 years. Property Management can be a successful and profitable alternative to selling!
If you know of anyone needing my services, whether it be selling their home, buying a new property or property management, please feel free to forward them this newsletter by e-mail. Introducing me this way to some of your friends, neighbors and co-workers would be greatly appreciated!
Successfully yours,
Jorge Gonzalez, ABR, CRS, GRI
RE/MAX Hall Of Fame
Your Realtor For Life!
|
|
|
