Home Buyers Don’t Miss The Boat!

By
Real Estate Broker Owner with Total Care Realty NCRE# 257455

Home Buyers Don’t Miss The Boat!

That is right yet another blog about why you should buy a home now if you are even considering it. You need to understand the actual facts that are creating a “perfect storm” situation for buying a home.

First of all interest rates are at a historically low level. Just for an actual example I had a buyer (a young woman, a nurse) qualify and lock in her interest rate to buy a home at the amazingly low interest rate of 3.75%! I am sorry but my jaw dropped when I saw that email that we got her locked in for her mortgage at 3.75% FIXED RATE. That is right this is not an adjustable rate (which they will give you a low teaser rate for the first few years). The interest rates have not been this low in well over a quarter of a century. So if you think you are going to ride this out and then buy later you will most likely be paying a much higher interest rate. As I was speaking with a Vice President at a local bank last week he told me that I should get rid of any variable rate debt. In other words any debt that the interest rate is not fixed. They are saying that by 2013 the interest rates will be in the double digits which is over 10%. That means even if the market stays depressed you will be paying much more for that home over the course of your time in that home.Rising Rates

Secondly as we have all seen the housing market is still slightly depressed in the pricing sector. HOWEVER, remember that real estate is an EXTREMELY regional business. For instance our market here in Greensboro, NC is much better then say the market in Las Vegas, NV. Here in North Carolina most of our markets did not take such a bad hit as many of the nationally reported markets that the national news media love to report on. In relation to the housing market there is one factor that is rapidly changing the landscape. The inventory of homes for sale is dropping. It is very surprising how many homebuyers are flooding the market. I have spoken with agents & brokers all over from in our own market here in the Triad of North Carolina (Greensboro, High Point, Winston-Salem) and we are all surprised at how busy we are with so many buyers emerging over a short period of time. I have even hired extra agents to handle the influx of buyers.
Well all of these buyers are buying up the existing inventory of homes available for sale. Well for those students of economics (Thank you Dr. Bebensee my Economics Professor) this is effecting the Supply and Demand Curve. To put it simply as the supply goes down the demand will go up! So as the demand rises so will the prices.

In real estate how we determine when our market starts to turn is when our inventory levels are at a 6 month supply. Over a year ago we had over 15 months of inventory on hand. How we arrive at this figures is simply taking the number of homes sold in a given thirty day period and divide it into the number of homes presently for sale. Just to satisfy your curiosity we have less then 9.8 months of inventory. So just remember as that number continues to decrease the demand/price of homes will be affected.

The moral is: This “Perfect Storm” for homebuyers is coming to an end so don’t the boat!

Storm coming to an end

Posted by

Click Here to Search for Homes and everything from coffee shops to schools on your computer.

QR Code for Free Mobile Phone App to download


  Scan or Click on the QR Code and Get Your Free Smartphone App to Search and See all the Homes for Sale in the Greater Greensboro, Winston-Salem, and High Point Area. 

 

CHECK OUT OUR COOL NEW YOUTUBE CHANNEL AND SEE ALL OUR HOMES

Total Care Realty's Youtube Channel

 

The Author:

Larry is a Greensboro Residential Broker, Certified Relocation Specialist, luxury homes and farm/land specialist,  and certified in Short Sales and Foreclosure homes, SFR, SRES & CHMS who can assist you with the purchase and/or sale of real estate in the Piedmont Triad Area that include but, not limited to Greensboro, Summerfield, Oak Ridge, High Point, and Winston Salem, North Carolina.  If you’re relocating to or from any other area of the country, Larry connects you with a member of our national team of relocation specialist in your destination or exit city of choice.  The destination service is of no cost to you!  As your Personal Concierge Realtor Larry provides customer service that is equal to none.  Your complete happiness is our top priority!  Larry Story — Total Care Realty, LLC — 336-327-1841 also at  http://totalcarerealty.net

Copyright© 2010 By Larry Story, All Rights Reserved…

 

 

Greensboro real estate facebook page  Greensboro real estate digg page  Greensboro real estate stumble upon  Greensboro Real estate twitter   Greensboro real estate rss feed  Greensboro real estate google

 

 IMPORTANT NOTICE

Mortgage Assistance Relief Services Disclosure

FTC effective January 31, 2011

As a seller you may stop doing business with Total Care Realty at any time.  You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer).  If you reject the offer, you do not have to pay us.  If you accept the offer, our commission will be deducted from the proceeds of the sale their will be no additional fee to you for our services.  Total Care Realty, LLC is not associated with the government, and our service is not approved by the government or your lender.  Even if you accept this offer and use our service, your lender may not agree to change your loan.  If you stop paying your mortgage, you could lose your home and damage your credit rating

 

 "All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental."

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the camera to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Location:
North Carolina Guilford County
Groups:
Be The Best In Your Field
Local Expert
Posts to Localism
The Art Of Marketing You
The Optimist
Tags:
home buying
market trend

Comments 4 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the printer to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Ambassador
1,246,971
Debe Maxwell
Charlotte Homes for Sale - Charlotte Neighborhoods
www.AtHomesCharlotte.com | Savvy + Company Real Estate

I totally agree, Larry!  You know that getting this message through to buyers can be difficult with the national news being so prevalent.  I am forever creating market reports to show buyers that the majority of the marketplace in my territory is at a 95%+ list to sales ratio.  I just hope they don't miss the boat--with the low interest rates...

December 17, 2011 12:42 AM
Rainmaker
639,029
Elite Home Sales Team
Tenacious and skilled real estate team
Keller Williams Realty

I could not agree more.  Now is the perfect storm for a great buy.

December 17, 2011 12:58 AM
Ambassador
871,108
Amanda and Jared Christiansen, YOUR Fort Wayne Realtors
Century 21 Bradley.
Century 21 Bradley (260)704-0843

I also agree Larry.  It is a great time for buyers to get off the fence.  Well written!

December 17, 2011 08:21 AM
Ambassador
541,243
Larry Story
Total Care Realty, LLC, Greensboro, NC Real Estate
Total Care Realty

Debe,

So true but just like the interest rates which are bound to change eventually is the fact that the inventory levels are dropping.  

Jared,

Many buyers are jumping off the fence just worried many more will miss the opportunity.

 

 

December 17, 2011 10:15 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the music-note to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Ambassador
541,243

Larry Story

Total Care Realty, LLC, Greensboro, NC Real Estate
How can I help you achieve your Dream!
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the truck to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

View My Agent Profile on MountainOfAgents.com