Friday, July 20, 2012

Has the Real Estate Busted Bubble Finally Patched All Its Holes?


The New York Times declared last month that, after several years of erroneously sunny pronouncements, there are concrete signs “the housing market is starting to recover.” The Wall Street Journal ventured even further with a story and tweet declaring "the housing bust is over."  Have the banks finally dredged through the glut of, seemingly endless, foreclosures?  Underwater homes are holding the market back. With some 6 million homeowners delinquent on their mortgages, the shadow inventory of distressed properties continues to be an anchor on the housing market. In everyday language, the housing market still has one foot in the darkened trees and one foot in the sun-drenched clearing, some analysts say. Are rates at the low and about to climb? Rates on the 30-year loan have been below 4 percent since early December. The low rates are a key reason the housing industry is showing modest signs of a recovery this year. A drop in rates could also provide some help to the economy if more refinance. When people refinance at lower rates, they pay less interest on their loans and have more money to spend. 


These are all questions we ask ourselves as we look to buy, sell or refinance a property.  Nobody likes making a decision to purchase and a week later come to find the same product is cheaper the day, week or month after we bought it.  At least a home isn’t technology and won’t be obsolete and outdated the moment after you buy it. Now it’s time to go into decision mode on a home,  we all want to buy at the bottom or sell at the top with the lowest interest rate in history that nobody else has ever received or will ever receive again. We need to be realistic though, buying at the bottom and selling at the top need to be more relative than absolute. You will never find the extremes unless you are blessed enough to hit it by divine will, our genius is not enough. When making these decisions, land on a rate or dollar amount you will be pleased with and or that fits within your budget and regardless of any future changes you will surely have peace regarding your decision. 
Written by: Mike Cornelius  MLO # 913476 
Cell 714-889-8421   
Direct 949-870-4014      

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