"Without a sense of urgency desire loses its value." Inventories in Carlsbad are lower and money is tighter. Qualified shoppers face long escrows common with short sales or heavy competition on bargain priced REO's. So where's the urgency? It's the interest rate.
Interest rates that have decreased in recent months to near historic lows and are now settling at a level that resists further decreases. However, the current environment is very unpredictable. In the long term, a 1% increase in interest rates can offset a 10% decrease in home values. Higher interest rates will put downward pressure on prices.
Qualified Buyers who need a home must weigh waiting out the current financial chaos, with the reality that increases in interest rates could more than offset any future price reductions and increase your monthly cost of ownership. Even if prices do go down, unless you are paying cash, your monthly cost will go up with the interest. Over a 30 year loan that means $10's of thousands added to your cost.
Sellers must understand that the higher the interest rates the fewer qualified buyers will be out there looking. Also, for those of you who are selling and "buying up" you will want to remember that a 20% decrease in a lower priced home is a lot less that a 20% decrease in a higher priced home. So your $300K home dropped $60K. Your $500k dream home dropped $100K.
A cautionary note for borrowers: Be sure to get a clear description of any loan terms from a lender before accepting a loan. The high rate of mortgage defaults only reinforces the need to avoid unexpected future increases in monthly mortgage payments. It is also more important than ever to obtain a lender's preapproval for a loan before writing an offer for the purchase of a home.
In summary, buyers will find greater choices and opportunities in the market place. Realistic sellers must be more willing to negotiate on prices. Sellers of properties that are well-located and in good condition may still find opportunity to obtain a strong offer.
Visit my website below and click on "The Best Investment Property in San Diego North County" and view my top 10 picks. You'll also find many helpful buying and selling tips and information request forms to point you in the right direction.
I'm looking forward to hearing from you soon.
There are many good reasons to select me as the most qualified real estate agent to serve you. One of the most valuable is my "100% Customer Satisfaction Guarantee". Please click on that link on my website to find out what other agents don't want you to know. I'd be pleased to take the time to listen to your particular objectives and help you get that "great deal" or price your home to sell quickly. Certified e-Pro and REO and Short Sale specialist.
About Dave Harlan:
Having lived in San Diego County for over 30 years and with over 25 years of sales and marketing experience, I have the knowledge and experience crucial to assist you in buying or selling a home. The real estate industry becomes more sophisticated and challenging every day. You deserve a FULL TIME dedicated professional agent who has extensive market knowledge, attention to detail, integrity and tenacious negotiating skills. Affiliated with an exciting new company The Cappelletti Group with a powerful network of real estate professionals across the nation. To assist you in finding the perfect home, I offer a computerized service that will alert you immediately via e-mail if a property meeting your specific search criteria becomes available. Please visit my website at: www.daveharlan.com to sign up for this FREE service. If you are looking for a serious REALTOR® with a sense of humor please give me a call. Here are some of my Credentials:
- National Association of Realtors - California Association of Realtors - North County Association of Realtors - Member of San Diego County Multiple Listing Service - Reciprocal Member of the Riverside Multiple Listing Service - Bachelors Degree - Sales & Marketing, Cal Poly, San Luis Obispo, CA - Masters Degree – Business Administration, National University, San Diego, CA - E-Pro – Certified On-line E-Communication Professional *Almost 100% of my business comes from referrals by satisfied clients. Please feel free to visit my website to read their personal testimonials. I enjoy the relationships I develop with my clients and would love the opportunity to work with you.
Warmest Regards, Dave Harlan
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
