Housing Market at the Bottom

The housing slump is over according to an article today by, Annette Haddad, staff writer for the Los Angeles Times. In today’s article, Patrick Lawler, chief economist of the Office of Federal Housing Enterprise Oversight was quoted as saying “ the transition from sizzling markets to normal or weak markets has been orderly so far, and recent drops in interest rates lessen the likelihood that precipitous changes will occur”

After an analysts upgrade, home builder stocks rallied on Thursday suggesting that investors see an improving outlook. Analysts say they are skeptical of dire warnings of pundits.

Alan Greenspan, former Federal Reserve Chairman and  Ben S. Bernanke, current chairman, are part of a larger group that declares the housing sector has bottomed out. And readers of The Realty Report know that when markets bottom out, they tend to rise again.

Save money shopping online

Check out www.secretprices.com, loaded with special coupons and discounts for many popular online stores, such as Amazon, Brookstone and Sharper Image. Ever buy at Office Depot, Gap or Circuit City? The website is loaded with savings for all these companies - most of which are discounts on any purchase you make, not just for one particular item they are trying to get rid of. It’s like having a personal “cyber shopper” that goes out and does the bargain shopping for you - it saves you time and money too.

Log onto the site, and click the link for “Coupon Center”. If you see a particular vendor you are looking for, just click the business name, and you’ll be led to a special page of their discounts. If you want to view them all - hit the link for “Latest Coupon Codes” to see a list of all the savings. You may also want to hit “Expiring Coupon Codes” to see if there are any discounts expiring soon that you’d like to take advantage of.

And don’t miss hitting the link for “Latest Deals”. Here you will find a wide range of special deals being offered on a wide range of products - printers for 50% off, cordless phones for 75% off...it’s worth a few minutes to prowl around and see what you might be interested in! “Expiring Deals” have some hot specials too - again, worth a few minutes of browsing.
You can shop by category, with everything from books to jewelry to event tickets to clothing. Just pick the category and you can select the product from a variety of stores, compare the prices, read customer reviews, and then save even more with secret coupons and deals. And, best of all....it is safe, secure, and advertisement free. While on the site you will not be bothered by annoying pop-ups, flashing advertisement banners, or spyware.
So you don’t have to shop ‘til you drop - saving online is now easier than ever. And let’s face it, it feels good to save money on your purchases, and saving a few bucks here and there adds up.

Getting a good deal will not only save you money in the long run - but will make you feel better about purchasing the product in the first place. Know anyone else who shops? Of course you do - so feel free to pass on this article, and help them save money too!

Buying Up

CONDITIONS ARE RIGHT FOR BUYING THE
HIGHER PRICED HOME YOU’VE ALWAYS WANTED

Higher interest rates and home prices in the past have kept home owners from purchasing larger homes.  The current real estate market conditions, however, are encouraging for many home owners who want to “buy up” to higher priced homes with more to offer.
If you are considering trading up for a larger and more expensive home, conditions for doing so couldn’t get much better.  Interest rates are the lowest they’ve been in two decades, and home prices in many regions are the most affordable they’ve been in years.
     You should consider a few factors before reaching a decision to trade up:

• Can you afford higher mortgage payments and property taxes?


• Is your credit record solid enough to qualify for the probable higher monthly mortgage payments?


• Do you plan to stay in your new home long enough to recoup your investment?

Obviously, you’ll need to sell your current home before getting serious about trading up to a new one.  A healthy real estate market indicates that you’ll have little trouble selling your existing home.  The national Association of Realtors reported in August that sales of existing single-family homes are rising steadily, especially among first-time buyers.  Affordable home prices and low interest rates could make the starter home you purchase several years ago particularly attractive.
     You’ll still need a significant down payment on a new house.  If you can afford the up-front cost, you may want to consider switching the fixed-rate mortgage on your old house for an adjustable rate on a new one.  This could allow you to trade up without increasing your monthly payments.
The type of mortgage you choose also depends on how long you plan to stay in your new home.  A good mortgage lender can advise you on whether a fixed-rate is an advantage is you’re planning on staying for more than 10 years.  A fixed-rate may be better for long term owners who don’t want to worry about rising mortgage payments.
     Trading up may not be worth the move if you’re planning on living in the new home for only a couple of years.  You might have to stay three to five years for your house to appreciate enough to recoup the closing costs.
     Conditions for a move-up haven’t been this good in many years, and you may not want to wit much longer to consider it.  An experienced real estate broker can help you decide if buying a new house now is a good investment for you.

For more information, call 562-449-8421 and insist on John Wall.