That may be the case, in some instances, but think about this:
Interest rates are rising.
If interest rates climb from 6% to 7%, your monthly payment on a $200,000 loan jumps from $1199 to $1331. That’s $132 each month, which is $1578 for the year, which is $47,340 over the life of the (30-year) loan.
So, if you’re still on the fence about buying because you think that home prices are going to decline even further, be sure to think about the true cost of waiting.
Just another one of those things that make you go hmmmm……..
According to Bernice Ross, renowned real estate coach: ”From 1995 to 2004, the average renter accumulated $4000 of wealth. In contrast, the average homeowner accumulated $184,400. To account for the difference of $180,400 of wealth accumulation, a $300,000 house would have to decline in value by 60%.”
“Each year a buyer waits to purchase a median priced home, they lose $18,040 in wealth accumulation.”
Those are some powerful numbers.
Bernice Ross is a well-known Real Estate Coach and leader in the Real Estate Industry. Check her out at www.RealEstateCoach.com
According to Cyril Moulle-Berteaux, managing partner of Traxis Partners, LP, a hedge fund based in New York, it may very well be! He suggest that April 2008 marked the bottom of the U.S. housing market. Will prices immediately start to turn around? Well, not terribly quickly, according to Moulle-Berteaux. But apparently the trend is no longer getting worse, which is the critical factor we need to pay attention to. And just what is stopping the decline? Affordability.
The earlier housing boom made it difficult for many Americans, especially those looking to buy their first home. According to Moulle- Berteaux, it took 19% of a buyer’s average monthly income to cover their mortgage during the early 2000′s. By 2005 and 2006, that number had risen to 25%. And the real hit was taken by first time buyers, who rocketed from 29% of income to 37%. All of this proved to be too much for many would-be buyers to handle. When prices got high enough, people simply stopped buying. Burst went the bubble.
According to Moulle-Berteaux, home prices have since fallen 10%-15% and interest rates have also fallen, bringing housing back into the affordable range. This should bring lots of buyers back into range to buy a home.
And here’s what I find interesting. The write says that the reason that home prices will stop falling, even with sales picking up, but acknowledging the bloated inventory, is simply that they always do. He sites numerous major housing market corrections wherein home sales and prices bottomed out and then price declines halved within 4-8 weeks. When we hit an inventory level of five months of supply, we’ll see that seller’s dream of a nice tight housing market.
The truth is that real estate is and always has been a local (and I mean very local) business. If you’d like to know what kind of inventory exists in YOUR local market, give me a call. I’ll help you determine whether now is the time to sell…or buy!
Angi Bell, Real Estate Consultant
Keller Williams Realty
1213 Mason Smith Dr.Metairie (Airline Park)
Sales Price: $194,500
Baths: 2 & 1/2
Take a look at this fantastic home with a fabulous floorplan that’s been updated by loving owners and did NOT FLOOD! Updates include: new roof, double insulated windows, custom blinds and crown molding throughout, new gutters, ceramic tile, water heater, exterior & interior paint, a great indoor laundry room and MORE! And there are two full baths and a half bath for your growing family. This home has great curb appeal and a fabulous back yard complete with a huge deck and plenty of room to play. The floorplan inside makes this home a great place for cozy family gatherings and big parties. And if you need storage, this is the house for you! There are ample closets and storage spaces inside and a big shed in the back yard.Airline Park is such a centrally located neighborhood and you’ll love this quiet street with lots of friendly neighbors. My clients have made this beautiful house their home and are anxious to pass it along to another nice family to enjoy! Please call today for your private showing!
If you’re looking for a totally renovated, upscale home in lovely Imperial Woods, this may just be your next home! The moment you arrive, you’ll know it’s special!
Imagine soothing away the cares of the day as your relax and enjoy the refreshing 1-year-old salt water pool & hot tub. Imagine gathering with family and friends in the gourmet kitchen which has been totally updated with custom all-wood cabinets, granite countertops, great lighting and high-end appliances.
Imagine hosting the best parties in your new home. The flowing, open floorplan boasts gleaming hardwood floors and the huge, awesome gameroom has a half bath and stamped concrete floors.
My clients spared no expense in their total renovation of this home and their pride in ownership is apparent the moment you pull into the driveway. Curb appeal galore is crowned with a fabulous front porch; there’s rear-yard access with a secure electronic gate; and the backyard is so fantastic and even has a pool house just waiting for your finishing touches.
If your’e ready for the finer things in life, call me today for your private showing!
Click below for a virtual tour!
7211 Clifton Drive
Baths:#2 full baths, 2 half baths
Sq.ft:#3650 living, 3973 total
Lot: 75 x 105
Step into the marble two-story foyer of this grand, custom-built home and you’ll be impressed. Gleaming new hard wood floors and a living room with a ceiling that’s two stories high are highlighted by floor to ceiling windows overlooking the beautiful pool. The gourmet kitchen with walk-in pantry opens to a fabulous keeping area that has a fireplace and another wall of windows. The stately study has handsome mahogany built-ins and opens to the living room and master bedroom. The private master suite is downstairs and has yet another fireplace, a gorgeous bath with a garden tub and large walk-in shower, and a closet that’s room-sized!
But don’t let this home’s elegance fool you. It’s very family friendly with five bedrooms and two full baths upstairs. With 5,270 square feet of living area and a huge back yard with pool and hot tub, there’s plenty of room to build those lasting family memories. My clients built this home just 13 years ago. They raised four wonderful children here and hosted lots of great parties! This home has the best of everything!
Perhaps you or someone you know might like a private tour. Could this be your dream home?
Some thoughts from the 2008 President of the National Association of Realtors, Richard Gaylord, and your Real Estate Consultant for Life, Angi Bell:
œReal estate is a long-term investment. (Gaylord)
Let™s keep in mind that real estate almost always appreciates. Some New Orleanians who bought right after Katrina are going to have to remember that and hold onto their property for a few years to realize a positive return on their investment. The rest of you are doing fine. Just because you may not make the kind of profit on your home today that you could have made if you™d sold it in the first quarter after the hurricane, doesn™t mean that your home™s value has not appreciated from its pre-Katrina status.
œThere™s no such thing as a bad market. (Gaylord)
Despite the overall (and often only national) picture you get, there are plenty of people out there looking to buy homes right now. And with such great interest rates and lots of inventory, there are great deals available.
œEconomic indicators remain good. (Gaylord)
Low interest rates, employment gains, GDP growing¦all point to healthy sales for real estate.
œBad news should be put in perspective. (Gaylord)
Foreclosure is never a good thing for a homeowner, but it™s important to keep in mind that the majority of foreclosures are from sub-prime loans. And, most of the sub-prime loans will never go into foreclosure. The foreclosure rate on prime loans is only 0.6 percent.
œReal estate is a local business. (Gaylord)
Don™t pay attention to the Real Estate Porn that you read, hear, and see in the national news. Instead, let me show you what the market is truly like in YOUR area.
There™s never been a better time to buy or sell! Call me today with all of your real estate needs!
Are you sick and tired of all the bad publicity and bad news that seems to permeate the air in our city? Well, dump that junk and get on the Good News bandwagon! Check this out!
I recently had the pleasure of working with a couple who are relocating TO New Orleans! They left their sweet Kentucky home and packed up their dogs and all of their worldly belongings and came down here and bought a beautiful home in St. Rose! Isn’t that fabulous???!!!
We spent two solid days looking at homes from LaPlace all the way to Metairie. With so many wonderful homes on the market, it was hard for them to choose, but we put our heads together, figured out what was most important to them, and they were able to make a good, solid decision that I think they’ll be very happy with.
I’d like to officially welcome Sandi and Stuart (and their pups) to our town!
In a few short hours, the turkey will go into the oven and my tiny kitchen will become Grand Central Station. Before any of that happens, though, I want to take a moment to express my sincere gratitude for all of my clients, past, present, and future!
I do business By Referral Only, which means that I spend 100% of my energy serving my clients. I have made a conscious decision to run my business this way, because I truly care about my clients and want to be their real estate consultant for life. My goal is to provide such an outstanding experience for you, my clients, that you will feel compelled to recommend my services to your family, friends, and co-workers.
So, enjoy your Thanksgiving and please know that I’m grateful for you and that I wish you and yours all the joy, happiness and prosperity that you so richly deserve!