2008 President’s Newsletter

Taking Advantage of Today’s Real Estate Market

There is no shortage of opinions when it comes to the real estate market and what the current trend is. Real estate has a cyclical component, as well as, a seasonal element. Cyclical is what we’ve experienced with the great upward trend to the equally significant fall back to stabilization. While we’re still in the down cycle of real estate, we’re in the optimum buying season. (Even at 107 degrees) This summer is no different. During this time many local real estate offices have seen an uptick in activity. My business partner and I have been incredibly busy, and I’m hearing the same from many of the other agents that service this area.

What can we attribute the increased activity to? I think there are several factors. First, it’s our tourist season and more folks discover our area every year and wish to buy here. Next, I’d like to point out that there are events in life that will always occur and affect real estate. People, retire, change jobs, need a bigger house, need a smaller house, get married, have kids, and pass on. And, there truly are some excellent purchase opportunities in our local market.

I spoke with a friend that is a local mortgage broker to get the current interest rates for this article. During the course of the conversation she made a couple of salient points. First, the rates that we see published daily are the jumping off point. There are a number of factors that affect the final rate the consumer will receive for their loan. Her follow up comment to that was, “if you can afford the payment then now is a great time to buy.” Rather then publish information that will date itself, I will share that the FHA loan limit for Madera County is $425,000. There are more loan programs coming online every day. Consult with the appropriate loan professional to understand what the rates are doing. You may benefit from the recent changes to FHA, Freddie Mac and Fannie Mae.

Maybe today is the day you can consider moving up to a bigger, nicer home. Perhaps you have enough value in your home to move to a smaller more affordable home. This may give you a lower payment, and an easier home to maintain. Perhaps now is the time to take a little money, do those projects you’ve been putting off. This allows you to keep your home in tip top shape, so in the future you’ll be a competitive seller. Maybe you can afford to buy a small investment home. One option may be to turn your home into a rental, and buy that dream home. Sell the other when the market is more favorable. There many opportunities to make this current market work for you as a buyer and homeowner.

What we know today is that the Federal Reserve Bank chose not to increase the federal rate at their last meeting keeping interest rates low. We also know that prices are down. There is inventory to choose from for buyers. We know that there truly are a limited number of foreclosures that are on the market now, and will hit the market in the coming months. At some point the “great deals” will go away and we’ll be in a balanced market. Take advantage of the market that we know exists today. Tomorrow may be too late.

Submitted by: Melanie Barker, President
President, Yosemite Gateway Association of Realtors
Email: Melanie@sellingthesierras.com