Thursday, February 22, 2007

To Buy Or Not To Buy?

In a slowing real estate market, buyers often ask is it better to buy now with low interest rates or is it better to wait and see if prices will drop. If I had a crystal ball and could tell you this, I would probably be retired on a tropical island somewhere, but I can give you a couple of insights.

Interest rates have been hovering around 6.5 percent for over a year and there are no indications that this will change any time soon. The minor fluctuations in rates we have been seeing don't really effect your payment much.

Say you have a loan for $100,000. At 6.5 percent the payment on a 30-year fixed rate loan is $650. If the interest rate drops by 0.5 percent it only brings your monthly payment down $5.00. You would have to see a dramatic drop (or increase) in rates for it too effect your pocket book.

Will housing prices drop? The National Association of Realtors is predicting a rising market throughout 2007. Also, it is almost March and spring is the busiest time of year in real estate. Historically, prices increase in the spring which means gambling on a drop in prices may not be a great gamble.

Confused? Give me a call at 800-659-1819 #103. I am glad to discuss this with you further. Or visit my website. Here you can view all Ludlow, VT homes for sale.

Saturday, February 17, 2007

Housing Starts Plunge But Rise In Northeast

The Commerce Department reports housing starts plunged 14.3% in January to the lowest point in ten years. This unexpected decrease off-set the gains of the previous two months.

Regionally, housing starts in January decreased by 28.5% in the West, 15.2% in the Midwest, and 11.8% in the South. Starts rose 8.9% in the Northeast.

Interested in Ludlow Vermont real estate? Contact me, 800-659-1819 #103 or visit my website to view homes for sale.

Sunday, February 11, 2007

Number Of Vacant Homes Surges has reported the number of vacant homes increased dramatically at the end of 2006 compared to the end of 2005, up 34 percent. This is an indication that housing starts need to slow even more than they ahe already.

Most of these vacant homes are new construction, but the number of vacant resale homes is up also. If a home is for sale due to a job transfer, many owners will leave it vacant if it hasn't sold, rather than have the family separated for an extended period of time.

Vacant homes don't show as well as occupied homes do. It is harder for the buyer to visualize howfurniture will fit in a room if that room is empty. Furniture in the room allows easier spacial relationships.

If you are moving becasue of a job transfer and would like to talk about how to get your home sold in the shortest period of time and not leave it vacant, give me a call, 802-226-8022. Or visit my website to learn more about Ludlow Vt real estate.

Friday, February 02, 2007

FEDs Leave Rates Alone

The Federal Reserve Board announced this week that it would keep the the federal funds rate at 5-1/4 percent.

What does this mean for Ludlow home buyers? Mortgage interest rates should remain stable. There was a slight increase in rates in anticipation of the FED announcement, but that slight increase should settle back down again.

If you are in the market to purchase Ludlow real estate and are wondering how much home you can buy at the current interest rates, give me a call. I am glad to talk with you!