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Tim Hall:
Licensed Real Estate Broker, actively selling since 1993. Co-founder of Re/Max Central Properties, with my wife, Bell Hall, and team-leader for a team of 7. BA from Capital University and a US Navy Veteran CU-60 U.S.S. Saratoga. Father of 3 - Alicia, Erica, and Amber; and grandfather of 1, Ava.
Home > Blogs > Greater Dayton Home Report > Archives > 2007 > November > 27
Tuesday, November 27, 2007
U.S. National Home Price Index Posts a Record Annual Decline
The S&P/Case-Shiller® Home U.S. National Home Price Index Posts a Record Annual Decline in the 3rd Quarter of 2007. Here’s the link: http://www2.standardandpoors.com/spf/pdf/index/CSHomePriceRelease112766.pdf
We haven’t hit the bottom yet. The FED is virtually certain to move rates down further. We are witnessing a unique set of economic factors that can actually help as many people as it hurts. Let’s take three common scenarios.
A home owner relocating to a different area that must sell their home.
A homeowner that has an adjustable rate loan, and does not want to move.
A first-time buyer.
The relocating homeowner will discover that, with few exceptions, they are moving FROM a buyer’s market TO a buyer’s market. They will need to price their home here aggressively, but they can bank on getting a fair price on the home they wish to buy. A little common sense goes a long way here. Ask your Realtor to show you homes that are vacant, or are part of a corporate relocation package. These can be a great value at this time. Again, the key is to offer a good value on the home here to secure your buyer, then you can go shopping!
Lowering interest rates will diminish the impact of an Adjustable Rate Mortgage (ARM) but more importantly it can make it easier for the borrower to qualify, so they can convert to a fixed loan. The key is to get in to a lender NOW and really go through a complete process to be sure you are ready. Many people have errors on their credit reports and almost everyone can take corrective measures so they can find alternatives to staying in an ARM. Need a great lender referral? Email me at blog@timhallteam.com. I always give out 2-3 to chose from, and they know I expect GREAT customer service!
A first-time buyer needs to spend MOST of their energy on ONE thing: EDUCATION! Learn how to understand community pricing, learn how to leverage their offer, learn how to buy a home that is virtually GUARANTEED to not lose value long-term. Buyers are having a hard time in the market right now. They are trained by the barrage of negative news, to offer low offers. Frankly, when tow homes are for sale and they are, for example, $10,000 apart in price but one is in great shape and the other isn’t, it pays to spend more. I have seen it over and over where a family says “I can do this or that, I’ll do it as a weekend project”. And five years later, they still haven’t done any of it. Right now a buyer can demand a good price and a GREAT home.
That’s it for now. Please feel free to comment. Sometimes I wonder if people are finding this blog helpful and I could use the encouragement from time to time!
