A REALLY GOOD TIME TO BUY

Jeffrey Steinkamp-Realtor                          December 2010

A good time to buy? Yes, eventhough we are past the time to take
advantage of the $18,000 in potential credit you could have received
before June 30, 2010, both market prices & interest rates are at an
all-time low.

Many housing economists have said that for borrowers with stable
incomes, good credit history, and FICO scores of at least 620, now is
an opportune time to purchase a home.  Although inventory rates are
below the long-run average, there still are plenty of options available
for buyers of high-end homes.

MAKING SENSE OF THE STORY FOR CONSUMERS

Consumers trying to time the market and purchase their home when
prices are likely to rise again are advised to take a different
approach.  According to one real estate consultant, while home
prices have stopped declining in most areas, and even have risen in
some markets, mortgage rates may rise, offsetting any potential
savings.

Early last year, the Federal Reserve began purchasing mortgage-
backed securities, which helped maintain low interest rates for
consumers.  However, the Fed’s purchase program ended in March,
and some analysts forecast interest rates to increase throughout the
rest of the year.  One financial publishing company predicts that rates
likely will rise to 5.5 percent by mid-2010 and close the year at 5.75
percent to 6 percent.  The CALIFORNIA ASSOCIATION OF
REALTORS® (C.A.R.) projects rates on 30-year fixed-rate mortgages
to average 5.6 percent this year.

Closely-watched indices, including the Standard & Poor’s/Case Shiller
Index, indicate that the high end of the market didn’t experience the
same dramatic price appreciation as the low end. Home prices in this
segment have not declined as steeply as homes in the mid- to low-
end of the market.  Additionally, many discretionary sellers in the high
end—those who do not have to sell their homes—are opting to wait
until home prices rise before listing their homes for sale.

The high end of the market also is facing challenges with buyers
qualifying for financing.  During the height of the market, many high-
end home purchases were fueled by exotic mortgage products.  Now
that those mortgages are no longer readily available, many lenders
are requiring borrowers to provide proof of income, such as W-2s
and recent pay stubs, as well as demonstrate their ability to meet the
monthly mortgage obligation.

For more information on this topic or any information regarding your
home or land, call Jeffrey directly at (707) 834-3428 or at Coldwell
Banker Sellers Realty (707) 822-5971 ext 124.
Please Contact Us
707-834-3428
humboldthomefinder
@yahoo.com
"ABC Realty was great...
this is a quote from a very
happy client." Mr. John Doe
JEFFREY STEINKAMP
707-834-3428
humboldthomefinder
@yahoo.com
Humboldt Homes and Land.com  
   ( Humboldt Home Finder.com & Humboldt MLS.com )



      

          Your Up-to-the Minute Real Estate Resource
        for Purchasing & Selling in Humboldt County
including Trinidad, McKinleyville, Arcata, Eureka, Fortuna......
985 G Street
Arcata, CA 95521
1-800-884-9740 ext. 124
Weekly Real Estate Informative
INFORMATIVE ARTICLES
(new additions weekly)