Tuesday, September 25, 2007

Why Would Buyers Wait?

I have been soaking in the statistical information that I heard last week at the economic forecast. I just read an article regarding the National Association of Realtors August numbers. I have had a number of conversations with local loan agents and the only conclusions I can draw is it is a good time to buy. Both the forecast and the article above are showing that the median home price is staying pretty steady. In fact the national number reported by the Association of Realtors is saying the median price actually rose a bit from August of 2006. As far as interest rates go, Joan Gibson from Chase pointed me in the direction of the Freddie Mac interest rate charts. If you look at some of the busiest markets Santa Barbara has seen for home sales like 1997 to 2000, those rates were in the low to mid 7% range and you had to pay over 1 point for those loans. We had many months in the South County during those times when the number of transactions was over 300. Rates are better now. My conclusion is this, prices are staying pretty steady (maybe they will dip a little) rates are good and there are plenty of properties to choose from. It sounds like a good time to buy. Did I mention that some sellers seem willing to negotiate. I think buyers are sitting on the sidelines not wanting to be the first one to jump in and I'm not sure that is the right strategy. Any Comments?

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