Every day we hear about a mortgage bank closing and certain mortgage products being eliminated. This economic downturn is in part the result of the relaxed credit activity of sub-prime lenders. Interest rates on these sub-prime loans are adjusting to higher rates, making them unaffordable to many investors and homeowners causing some delinquent mortgage payments and some home foreclosures. Borrowers with good credit and stable income are having no difficulty in making their mortgage payments, and new mortgages are available to them today just as they were a year ago.
The truth of the matter is that as of July 30, 2007, 97.4% of all US mortgages were current. 30% of all real estate in the US is owned free and clear. Traditional mortgage programs are available. Underwriting is tighter but mostly unchanged and funding is reliable. In fact, mortgage applications are steady according to the Mortgage Bankers Association. Some Sub-prime loans are still available, but are more difficult to find and rates and terms are more representative of the risk this type of lender is for the lender.
Rising inventories of unsold homes allow buyers many more homes to choose from and mortgages with historically low rates are still available for buyers with good credit. Sellers are becoming more realistic in pricing and more open to fair negotiations. There are some real values out there for the Buyer who is ready and able to buy. They should be ‘willing’ as prices have adjusted and a Buyer can negotiate a really good price and terms for the property they select.
Over the last 50 years, Real Estate has averaged a 6.9% appreciation rate per year. 2007 will be the number 4 or 5 highest dollar volume of real estate sold in the US since they began tracking. The general Media seems to need shock and awe to scare the public and drive viewers to their medium. Each market is very specific and the Media never puts a Local position or information on their story so people tend to think everything has gone sour.
Our market here On The Outer Banks, like many, has softened. There are properties selling and those who are choosing to take advantage of opportunity are the winners. Today’s Buyers are getting great rates and terms on money they borrow and an even better price than they might have ever hoped for. Knowing when the bottom hits is a true gamble most cannot hit with any accuracy. A home or real estate investment is a ‘long-term’ proposition. It is still one of the best investments you or your family can ever make.
Don’t let the negative Media deter your interest in buying On The Outer Banks!
Bill,
Why do realtors want to blame the "negative" media for problems with real estate here on the Outer Banks? No one was blaming them when they were reporting the "building boom" here and promoting the Outer Banks with their fluffy news stories; or when realtors were pouring thousands of dollars into their advertising coffers. Let's put the blame where it really lies...and that is greed and over-development. As you say #$@@ happens. Just my opinion.
Posted by: Billy | December 27, 2007 at 08:04 AM
Good Afternoon Ray,
As a long time REALTOR (some 31 years) and basically a Conservative Flavoring on Life... I feel the media spends entirely too much time on the negative. I know we, so to speak, as the reading or viewing public, encourage the media to feed us negative medium as it has come to be expected that negative sells.
Well, Jack Canfield says, "I hear we are going to have a recession but we refuse to participate."
The media is the media. How about some Coastland Crimes ;-O
Posted by: Bill Holt | January 23, 2008 at 03:41 PM