June 1st, 2010 4:10 PM by Rob Robbins
With all that has went on over the last three years we often forget what it was like before that. In fact, we have enjoyed low interest rates for quite a while.
Caution! This market is not always going to be like this. What a perfect world if you are buying real estate and have money for the down payment. It is not as enjoyable for someone that needs to sell their property now.
We have some issues coming that will change our market.
1. We are experiencing some of it right now with buyers financing. If you need more than 90% financing and do not have good credit, you may not be buying a home in 2010 or 2011. Some would say that is the way it should be. In our market, we do not have first time home buyers with that kind of savings.
2. Interest rates will not stay low-meaning under 7% - through next year without government intervention. When I bought my first home we thought 10% interest was a good deal.
3. Government spending is going to cut future government housing program funding.
We are all guilty of taking things for granted and then are really upset when they are gone.
If you are looking to purchase property in the next 12 months or wanting to sell your home in the next 12 months I would encourage you to not delay. If you have to get your finances in order then I would make it a priority. If you are not sure where you would move to if your home sold, I would rent.
Government spending is going to affect us all and many things we have grown to expect from our government is going to suffer.
I will have better news next time ( I hope ). I have had several deals not happen this year and that used to be very unusual.