Everybody want to know how is the real estate market. There are a lot of real estate agents (or ex real estate agents) that will tell you flat out "The Market Sucks!" Others will say: "well, that really depends on how you fit into the market. Are you a buyer, seller or investor? In most cases, that is a correct way to respond to the "so, how is the market" question.
I think the real answer to that question is "How Motivated are YOU Right NOW, to either buy, sell, invest or rent?"
You see, not everyone will be able to buy right now. The mortgage markets have taken a strict stance on who can qualify for a mortgage. For the sake of this article, lets say you can get approved. If you need help buying or want to see what homes are for sale right now: www.mydelawarehomesearch.com
When it comes to sellers, not everyone can sell their home for what the market is saying it is worth. Basically, they owe more than the home is worth. The (not so) SHORT sale is another topic. There is help out there for those that just can not keep up with their mortgage, anymore. If you are wondering if you can sell right now: www.sellmydelwarehome.com or if you just want to see the most recent market data on your specific area, we can create a FREE custom report and email it to you, it is called a market snapshot: http://www.teamsordelet.com/Market-Snapshot
The investor: Cash is King. If you own more than four properties and you do not have a commercial line: forget about it!
This article is focused more on those that can get approved for a mortgage and those that really want to sell -or- really have to sell. There are also some aggressive, outside the box, approaches to investors right now as well.
Take a look at this chart. I have used the first edition of this chart since the end of 2006. Robert J. Shiller has studied the real estate market in this county as far back as 1890. He demonstrates in this chart the "ups & downs" of our countries real estate market. The chart is broken down into today's dollars and since the 50's shows us about where our values have been. The exploding real estate market of 2000 to 2006 is demonstrated on this chart. It is a wonder why no one in our government, the banks or somebody did not stand up and yell(or scream) that we were about to be driven into some terrible times.
http://i672.photobucket.com/albums/vv84/dsordelet/case-shiller%20report/saupload_case_shiller_chart_updated.png
THE BOTTOM LINE IS THIS:
BUYERS: Interest rates are low. Interest rates will soon rise because the government is about to stop buying down the interest rate with mortgage backed securities. Even though home prices may still fall, rising interest rates will off set any monthly savings that you would have realized with falling home prices. On top of that, FHA is working on tougher qualification standards. There is even talk that they will want a full 5% down. (the buyer will need 5% of their own money in the mix) and reduce the amount of seller help that a seller can give to a buyer. On top of that, why would any first time home buyer not take advantage of the $8,000 first time home buyer tax credit and any repeat/move-up buyer not take their share of the $6,500 credit. YOU HAVE TO BE UNDE CONTRACT BY APRIL 30, 2010 and you have to close (completed the purchase) by June 30, 2010. Need to buy in the next 24 months? NOW IS THE TIME!
SELLERS: The low interest rates are keeping your home values from falling even quicker. The government has slowed down the natural progression of the market to correct itself, by buying down the interest rates and offering the first time and repeat buyer tax credit. Your homes value will continue to decrease. How much is unknown by this writer. (IF I Only Had A Crystal Ball) If Shiller is correct, we will see declining home values into 2013. Many experts also predict that the days of 10%, 15% & 18% appreciation are long gone. We will be back to a modest 1% to 2% (across the country). I believe that here in New Castle County Delaware, we will start off with slow or low appreciation on home values and will increase to a modest 4% - 5%. What does all that mean? If you are sitting there thinking that you are going to wait until next year to sell your home, YOU ARE WRONG!!!! if you think the values of 2006 are going to return or even the values of 2008. If that is what you are waiting for, you may just be sitting there with your calculator on December 31, 2018 thinking, I should have listened to The Team Sordelet Realty Group. I should have given them a call at 302-476-2057 or checked out their web site www.teamsordelet.com
We can help you get the job done and done right!