Time to Buy...

Good day,


The slow summer season has seen Seller's accepting lower than asking prices and in some cases, fairly large discounts from asking prices. I saw a deal last week where a home was reduced $80k from the original asking price (from $389k). However, I do not expect these discounts to continue. Inventory of good, solid "move in" condition homes is important and these types of homes across all price ranges continue to get close to asking price.

Overall pricing that Paul and I are using, is set at between 2006 and 2007 levels. This means that you can buy a home today for just below the 2007 price (in general terms). Some homes in for even less.

Interest Rates. We are seeing rates for 5 years locked-in as low as 3.55%. If you have not gotten a "rate hold" on one of these low rates, call me today. I do not believe that we will see these rates again, should they start to rise again.

In 2007, it was common to see interest rates well over 5% for five years. If you add up the 2007 house prices with 2010 interest rates, you get a potent mixture for recovery. In fact, I am seeing some interesting "buy-up" activity where people are justifying the increase in price with lower rates (Rutland).

Therefore, I predict that buyers this fall will be getting the best deals, both on price and interest term, making the overall cost of ownership low by comparison to even 2006 and 2005 levels (based on payments).

I always have time for you, so feel free to call me for a private appointment anytime.

Regards,
Dean