With the meteoric rise in real estate values over the past few years, people didn't really give much thought to how or why they were selling their home. They just knew that everyone else around them was selling to make a huge profit, and they wanted to be a part of it. That made sense when things were booming, and there was no sign of slowing down. But now that the market is stagnant, and falling in some areas, people want to know why this is occurring. The easiest, and most accurate answer to the decline in home sales lies within the history of the interest rate.
A Good National Housing Market Indicator
The real estate "boom" period was fueled generously by the continual decline in the interest rate for mortgages. 30 year, 15 year, it didn't matter because lenders were shooting applications out as accepted left and right. Even bad credit applicants were getting a fair shot as new loans were developed to get them into the market as well with the influx of ARM loans and 50 year loans. But as the Federal Reserve kept inching up their interest rate, soon the mortgage rate followed.As the borrowing rate goes up, it keeps more and more people away from being able to borrow enough money to own a house. People started retreating from the market and that drove demand down. The housing supply though was continually rising, but as time went on, the demand could no longer meet the supply. Gone were the times that houses would sell within weeks. Now houses sit for months unsold and unwanted, with buyers knowing that if they have the patience for it, they can get a much better deal.
This didn't just affect new applicants. Anyone who signed an ARM loan (Adjusted Rate Mortgage) started to default on their own loans that they had willingly signed for a few years prior. As the rate went up, so did the rates on their loans, and monthly payments started escalating. Some of them had no choice but to foreclose on their homes, and that drove supply up even more.
So the bottom line is that you need to take a look at the interest rate for mortgages over a period of time, and see where the trends are going. If the rate is climbing, the housing market is going to suffer from it. If it starts to decrease, you should be able to see indicators marking the increase in home purchases nationally.
New Guestbook
Like this lens? Want to share your feedback, or just give a thumbs up? Be the first to submit a blurb!
New Link List
- FSBO forum
- Rather interesting forum about FSBO. As I see new posts appear every hour. Good way to be updated in real estate topic!
- Homes For-Sale-By-Owner
- It is a really good web-site that which may help you to make a good penny-worth.
- Trulia
- There you may ask anything you interested in or share your own experience about FSBO.
- FSBO&Pets
- This page may help you to sell your house in case you have a pet. Find out what the problem is and read about solution.
- Bathroom - FSBO impact.
- There are a lot of different ways to increase the attraction to your home. One of this ways is to remodeling and updating your bathrooms. At this page you may find some advices of cheap and easy remodeling.
- Preparing for sale
- Here are some tips that will help you know just what to change and modify in your home to make it more appealing for sale.
- Reasons of FSBO
- In case you are just thinking of selling the house you should visit this page. There is some information that explains why so many people choose FSBO today.
- Home appraisal
- Do you think that potential homebuyers are only people you should create an impression on? In that case you are absolutely wrong! Why? Read this article to get an answer.
- Home taxes
- Is paying taxes on a home a great problem for you? In real today people pay more taxes than ever before. Do you want to now more?
- FSBO_seller
- FSBO has a lot of advantages. First of all you will save the 6% commission and have full control over the sale of your house. But it isn't as easy as you may think after prima facie. Do you want to now what complexity you may be confronted by?
- Deal_arranging
- House preparing and showing are only a half of problem. Do you really know what you should do after taken an offer? There are some tips that may help you to put the axe in this helve.
- Tidy home
- Do you want to be shore that potential buyers see the things you want them to see? And how to create a positive first impression of your house? All this information you may find on this page.
- FSBO_marketing
- Here you may find a lot of interesting information that consist of FSBO marketing strategy.
- Sell reanson
- Do you know that there are some special sure sign that you should sell your house? When to sell the house and what way should you choose? You may find answers to this and other questions at this page.
- Selling tips
- One of the most important questions that every home seller asks is: «How to prepare you house for selling». In case you want to find an answer you should visit this page.
- FSBO difficulties
- It is not a secret that in case you start anything you have never done before; you will have a deal with a lot of different difficulties. What are they in FSBO?
- FSBO checklist
- In case we have decided to buy a house we have a lot of different questions. Some of them are tiny, other huge. But any way we have to be prepared for all this difficulties. One of the tips that may help us with this is checklist. Do you want how to make it? This is the reason to sit this page.
- Price analisys
- Do you interested in selling price comparative analysis? You may find this information here.
- Auction
- Have you already thin about selling your home by auction? Really? Visit this page to find more information about Real Estate Auction Fundamentals.
- View
- Do you think that view of the house is the most important thing? Yes, it may be lovely, nice, but not main%u2026
- Real_estate_market
- A good article in case you interested in getting more information about Real Estate Market.
- Rent or buy
- It is really difficult to decide what the best way is. A lot of people ask themselves: "Should I rent or buy the house?" In case you have the same problem you should visit this page?
- Offering Benefits
- There you may find some tips that would help you to make homebuyers offering
- FSBO&Internet
- There you may find some tips that help you sell you house%u2026 but only in reason you selling it in internet.
- Refinance
- Do you interest when should you refinance your house? At this page you may find some scenario which would give you an answer.
- Know FSBO
- There are some secrets and interesting tips which you should know before you FSBO.
- Internet_buyers
- Do you want more about your potential house buyers and what are the reasons of using Internet? In this case you should visit this page. There you may find rather interesting info and statistics.
- Without an agent
- Do you really think that the agent may sell your house better then you? Or that you can't do it by yourself only because the market begins to change. At this page you may find some tips which would prove you that you were wrong.
- Pictures for sale.
- It is very important for potential homebuyers to see you house, to imagine how they would live there. And the first step you may do to help them is to make a good pictures of you house. Do you want to now how to make it better? In this way you may visit this page.
- Help your house to stand out against a background of others'.
- After a person decides to buy a house, he has to look through a lot of different advertisements. And it is not as is easy for him to see your one. So you should help him with it. How? Visit this page and you will know it.
- Some things you may need to consider valuing your house.
- Hey, man, it's really nice site! Here u can find all the information required for figuring out the value of your home! They will also recommend how much do u need to loan. And it's really nice that they layed out the information how to state the value of your home yourself.
- How to sell your real estate at the time of (during) hypothecary crisis
- Do you wanna sell a house? Do you need some usefull tips?This site is what you need! They'll give you some really usefull tips how to show to the best advantage of your home! And all this for FREE! Don't lose an opportunity to sell your real estate for a higher price!
- House clean
- ...cleaning of your home becomes mandatory for every FSBO seller
- Mentality of House Buyer
- An interesting page which would help you to understand a mentality of house buyer.
- Price is the key to successful sale
- Price is the key to selling house by owner. So you should know exactly how to do pricing right. This page may help you with this.
- BelHard Group
- BelHard Group is one of the leading IT holdings in Belarus, and BelHard Outsourcing is its software development division.
- FSBO Prerequisites
- What should you know before entering any FBO deal? How to make a right choice and what is really important? You may find answers at this page.
- FSBO in Condo
- Selling your condo for sale by owner or FSBO can save you thousands and even tens of thousands of dollars. On a $300,000 sale of a condo, typically a seller pays a 6% commission which would be $18,000. Now sometimes in tough markets you need an experienced real estate agent to help you sell your condo, but sometimes you don't! Give it a shot and list your condo online for free and try and put those savings right in your pocket!
- What Do I Save if I Sell FSBO?
- A lot of people choose FSBO only because of saving money. How much money they could save and what is the right way for it.
- Steps of FSBO selling process
- FSBO is not so terrible process as you may think. You are really may do it by yourself. But of course you should know the main steps, which may help you to make successful deal.
- FSBO on Internet
- Internet - one of the transformations of real estate market. J Directions for use.
- FSBO Is Untapped Market For Realtors
- Few tips in communicating effectively with FSBO sellers!!!
- Real estate Appraisal
- At this page you may find a lot of interesting information about real estate appraisal. What is a Appraisal? How is Value Established? What is Poor Location? This and many other questions wouldn't make you to be nonplused any more.
- Choosing a house
- This page may help you to make the right steps on the way of choosing a house. You would be able to say what kind of house is right for you and determine the specifics you want or need in a home.
7 Reasons Why Now Is A Great Time To Buy
Now truly is a great time to buy a home. If you-or someone you know-is ready to move up or become a first-time owner, if you plan to stay a few years and you've been waiting for the perfect time to buy-now is that time.time_money230246.jpg
Here's why. Housing cycles cure themselves. Prices soften, inventories rise, savvy buyers snap up bargains, demand increases, and the market returns to normal. As buyers return that demand pushes home prices up and mortgage rates
higher, according to housing economists and past history. Higher prices and higher rates mean waiting today costs you more tomorrow.
The secret is to buy while the headlines are gloomy, secure an affordable fixed-rate loan and enjoy the home you want to live in before the advantage of today's market passes you by. By taking a long-term view-as a home investment should be seen-you can weather temporarily lower prices in the area while the market corrects if you buy now with a fixed payment.
Consider these reasons why our experience shows this is a great time to buy:
1. Take your pick. Gone are the days when there were more buyers in the market than homes for sale. Then, options were few and many buyers felt they had to take what they could get whether or not it was the ideal home for them. Now, the reverse is true: There are lots of homes to choose from, and buyers can afford to be picky. Also buyers are no longer competing with property "flippers" and other investors in the marketplace.
2. Do your homework. With more properties on the market, buyers no longer feel pressured to put an offer on a home before another buyer snaps it up. Instead of making a decision on the spot, buyers can actually spend quality time visiting several homes and make a decision on their own timetable.
3. Make an offer. In the sizzling seller's market, buyers were outbidding one another-sometimes offering amounts thousands of dollars above the list price of the home they wanted. Today, buyers don't have to engage in bidding wars and-bonus-they're finding sellers more willing to entertain their offer.
4. Negotiation encouraged. In the past, many buyers, striving to gain the upper hand in bidding battles, waived contingencies for home inspection, pest, roof or sewer inspections. Sellers were able to sell their homes "as is" to buyers willing to shoulder the cost of repairs. These days, however, more buyers are shopping for warranties and asking for inspections, and, if problems are uncovered, they can reasonably expect sellers to negotiate to get a closed sale.
5. You can't beat the location. Want to live closer to work? In a better school district? Near the town center? In a larger-or smaller-home? You may be surprised at the abundance of possibilities out there that are a much better buy these days.
6. Bargains available. Qualified first-time buyers, down-sizers, second-home buyers, rental investors and others can find bargains today-if you know where to look. Bargains are available from owner short sales, lender-owned foreclosures, builder close-outs, executive relocation properties, estate sales, even tax and condemnation sales. If you are looking for a below-market value, we can help.
7. Affordable payments. Interest rates on a 30-year fixed-rate mortgage have been hovering near 6% this year. Compare that to the average interest rate 10 years ago on a 30-year fixed, which was 6.94%; 20 years ago, 10.34%; and 30 years ago, 9.64%. From an historical standpoint, today's interest rates look terrific. Combine low rates with low prices to get low payments, and you know why now is a great time to buy.
source: Fizber.com
3 Tips When Pricing Your Home
When buying a home for the first time it is most likely the biggest financial decision you have made thus far. Now you are at a point when selling your home, for what ever reason, is just as big of a financial decision as buying. No matter what the reason for selling your home you still want to get as much of your investment back as possible. There are 3 key points to consider when pricing your home, market conditions, targeting, and price.1. Recognize that housing markets are local.
Home prices are like the weather - very different in different areas. In addition, demand will change depending on the price range and even the neighborhood. What you need to know: What's the demand for a house like yours in your area?
Look at comparables for similar houses. Study prices and sales for one year ago, six months ago, three months ago and current numbers. What are the trends? Are prices going up or down - and by how much? How many days are homes staying on the market? If they are on the market longer, how much of that could be seasonal? In many areas, spring and summer are the busy seasons.
Pay special attention to the delta between the list price and the sales price. That is, look for a meaningful relationship between list price and sales price. Perhaps most homes are selling for 5 percent less than the list price.
If you're not using a real estate agent, it's especially important to use the Internet, visit open houses in your area and study home sales in your Sunday paper. But you also need to realize that the paperwork alone only tells part of the story. While sales and prices are public, many times seller concessions are not.
2. Analyze who is buying and selling in your market.
What's your competition? Who are the buyers, and why are they shopping?
Do you live in an area like Phoenix, a growing market with people coming in. Or are you living in an area that doesn't attract a lot of new residents, where many shoppers are bottom fishers who don't have to buy but are looking to pick up a bargain.
Are you competing against a flood of new houses from builders eager to sell, or are you selling a newer home in an area where most of the housing stock is older?
3. Consider strategic pricing.
Here's how it works: If prices in your area are dropping 1 percent each month, and you want to sell within the next three months, you take 3 percent off your price right off the bat. So if you were going to put your home on the market for $400,000, you set the price at roughly $388,000.
The upside: You'll have the competitive edge over the guy who's dropping his price every month, without the air of desperation. Plus, in a market where prices are falling, you'll make more money if you sell quickly.
The downside: Predicting the market is a tough call, even for the pros. And it's really difficult to raise the price if your market starts to rebound.
Source: Fizber.com
Use an accent colour in your living room
Adding an accent colour or two will give your room a stunning finish.How to create the look:
* Choose an accent colour with impact, like hot pink or lime green, to add energy to your room
* You don't need to add much - just a few accessories, a throw, or a piece of furniture like a footstool
* Overall your accent colour should be no more than 10% of your total scheme. And if you're scared of going over the top, keep the look subtle with a few candles or flowers to add colour and a professional finish
Source: Fizber.com
Buy House With Bad Credit
There is no doubt that buying a home is a big decision. A home is the most important, and most expensive, single item most people will purchase in their lifetimes, and getting the best deal on a home loan can save you thousands of dollars over the life of the loan.If your credit is less than stellar, then find a house to buy can be even more of a challenge. While those whose credit is perfect will be likely to qualify for those eye popping low rates advertised by the banks, home buyers with bad credit will have few options and be subject to higher interest rates, higher down payment requirements and higher monthly payments. So, how do you buy a house with bad credit?
One of the most important steps to take if your credit is less than perfect is to get pre-qualified for a mortgage before you begin shopping for a home. While it is important for any home buyer to pre-qualify for a mortgage, it is even more important for those with bad credit. When you pre-qualify for a mortgage loan, you will know up front exactly how much you can borrow. This means that you can tailor your home search to only those properties in your price range. You will not waste time looking at properties that you cannot afford to purchase.
Getting a copy of your free credit report, and trying your best to clean up the negative information, is also an important step to take before you begin trying to find a home and a mortgage. While it is very difficult to remove legitimate negative information from a credit report, it is entirely possible that your credit report contains errors. A recent survey by a consumer rights organization revealed that 7 out of 10 credit reports reviewed contained at least one error. You can get help to repair your credit and improve on your credit score.
The prospective home buyer should be sure to request a copy of their credit report from all three major credit reporting agencies, TransUnion, Experian and Equifax. Under a new law amendment to 'Fair Credit Reporting Act', all consumers are entitled to get one copy of their credit report free each year. Check with the credit-reporting agency to see if you are entitled to one of these free reports. Once you have the reports in hand, be sure to review it carefully and immediately report any errors you find. Cleaning up any problems you find will help improve your credit score and help you get the best possible interest rate and terms on your home mortgage loan. For example, by merely increasing your credit score from 570 to above 620 will lower the interest rate by up to three-quarters of a percentage point!
You may decide to wait for six months to a year to see how your credit score shape up in order to obtain a better interest rate on your loan. However, depending upon the housing prices movement in your area, waiting for more than a year before buying a home may cost your spending 5% to 15% more than what it would cost you today! Therefore, you are advised to consider various factors, housing prices trend and credit score, to find the best time to buy your home.
Once your credit is as good as you can make it, now it is time to start shopping around for the best mortgage loan. While you may not qualify for the best rates, but mortgage loan rates can still vary from lender to lender. Be sure to shop around at local banks, credit unions, savings and loan associations and mortgage brokers. Be sure you understand all the terms and conditions, including any fees or extra costs.
There is no denying that buying a home with bad credit makes finding a mortgage loan more of a challenge. But bad credit is no reason to abandon your dreams of home ownership. Some advance planning and hard work will allow you to buy the home you need, even if your credit is less than perfect.
Source: Fizber.com
Promote your Fizber Listing at the Top of Google Search Results
Have you ever wanted to move your Fizber home listing to the top of the Google Search results? The SearchWiki (available to signed-in Google users) lets you customize your Google Web Search results and even "vote" for your home listings, very similar to Digg. You can vote the results "up" or use a "X" if you don't like what Google returned. When you see your home listing in the search results, click on "up" and your listing will be displayed above all results for the search term. The customized results will appear every time you do that search in the future (assuming you are logged in).Source: Fizber.com
