My New Blog

So the question remains, how low can it go? This question is not one that can easily be answered.  In reality anyone who claims to know the answer is purely speculating because this economy is unlike any we have seen before. 

My philosophy is live for now!  With this in mind we have to determine what we know now.

What we know

1.  Housing prices are cheaper overall then they have been in 4 - 5 years.  Some deals can be found that bring us back to nearly 90's pricing.  Many sellers who are experiencing economic hardships are motivated to sell their homes and move on with life.  See the attached chart for more information.

2. Sell low, buy low.  Many of my clients have been reluctant to reduce the price of their homes.  What needs to be remembered is that if you sell your home in a down market with the intention of buying again, you also get to buy in a down market. This can lead to a "wash" in your equity position.  For example, one of my clients sold their home for $250,000, even though it was listed originally at $300,000. She then bought a $300,000 dollar home originally listed for $375,000.

3.  Short Sales and Bank owned homes are becoming more and more available for the buyer who is patient enough to wait.  If you can afford to wait 2-3 months to buy your home, short sales and bank owned properties offer potentially great savings.  Just remember that this process can take some time and for first timers can be especially hard. No one likes waiting for an answer to such a large questions. (Will you marry me? … Let me get back to you in 3 weeks)

4. Interest Rates are the lowest they have been in 50 years and there are still plenty of loan programs to choose from.  My other website is a great resource for people interested in leaning more about the available loan programs.  www.PortlandHomeLoanExpert.com.  If you would like to see how much home you qualify for please feel free to let me know. Pre-approvals are always free and with no obligation.

5. First timers can qualify for an $8,000 dollar tax credit which does not need to be paid back!  This is a dollar for dollar refund of anything you may owe at the end of the year or cash in your pocket.  For more information please consult my web page under the First Time Buyers tab.

6. Do you love the home? Then why are we making such a big deal about $10,000 dollars in purchase price? Even if you did “wait” for the bottom what are you chances of finding it? There is no easy button telling you that it has arrived.