The national media has done a very good job of expressing the recession’s negative effect on the real estate market. What they’ve failed to remind us of is that real estate is REGIONAL, and not every region of the country has been hit as hard as others.
Regardless, lacking this clarification, many buyers, including some potential buyers in Hampton Roads, are scared off of buying real estate because they hear how horrible the market is…in places like Nevada, Florida, California…places hundreds if not thousands of miles away from Hampton Roads.
Logical? Not exactly. Do I care as a Realtor actively licensed in Virginia how bad real estate is in California? To be perfectly honest, not in the slightest. And you shouldn’t either.
I want you to ignore my goofy sales pitches. Just look at the facts!
As you can see, interest rates are at an all time low. Buying a mortgage is smarter than ever right now because in the long run, you’ll be paying less money for the same house if you were to buy it a year or two ago. Real estate is a long term investment for many, so if you’re planning on staying in any area for at least a few years, why would you pay a rent with no chance of seeing a return on that money instead of taking advantage of a mortgage with a low interest rate?
As you can also see, interest rates jump up and down. It may not seem like much, but in the recent past, the interest rate can jump a half of a percent (in either direction) in a matter of a few months. That can be a 10% overall jump in interest in some situations. Moral of the story: WAIT AT YOUR OWN RISK. No one (including me as a Realtor, or my lender buddies) have a crystal ball.
Another interesting graphic. In Hampton Roads, the rate of foreclosure has made a huge decrease in recent months. This is great news for sellers because cheap deals on foreclosures are drying up, so now prices will return to fair market value, and sellers will be able to get some real cash for their house!
This is HORRIBLE news for buyers because those deals are running out. Just the other day I was looking at a bank repo, but before I could get some showings in, there was already a purchase agreement ratified for the property. AFTER 7 DAYS ON THE MARKET.
Moral of the story: If you see something you like, don’t wait. Be aggressive. Don’t let the National News fool you into COMPLACENCY. Real estate is bought and sold every day in Hampton Roads.