As we weather this economic storm, there are three essential principles we can count on for the future:
1. Inflation leads to higher interest rates.
2. Houses are selling in high quantities.
3. If you’re a seller, it’s time to cut your price and be decisive; if you’re a buyer, it’s time to purchase or miss out on the opportunity.
Houses Are Selling in High Quantities
According to the National Association of REALTORS ®, the U.S. is currently in position to sell 4.68 million homes this year. That would put 2009 within the top 5% of homes sold in U.S. history. Although many people are purchasing distressed properties in foreclosure or short sales, there’s also a large number of purchases made on non-distressed property sales. The market is indicating that we may have reached the bottom.
Buyers and Sellers
• Buyers—don’t make the mistake of waiting for everybody else to make a move before you feel comfortable enough to purchase. Many people have made a purchasing decision already, and we never know what the bottom of the market is until it has passed. Here’s one thing you can take to the bank – higher interest rates are the equivalent of a price increase.
• Sellers—if you’re serious about selling your property, adjust your price to where the market is moving, take your lumps and move on, or you’ll be waiting a long time.
“Get ready for inflation and higher interest rates.” – Arthur B. Laffer, Wall Street Journal, June 11, 2009.
Information Provided by
Susan O’Driscoll
Princeton Capital- Experts in Home Lending
650-712-2483
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