Top 7 Surprising Secrets of A Slowing Real Estate Market
By Ed Craine
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There is no denying that the real estate and mortgage markets cooled in 2007. But before you decide to freeze all real estate transactions in the New Year, you should know that there are some pleasant surprises to be found, whether you’re buying, selling or considering investing in real estate in 2008.
- Qualified Buyers Can Get Great Interest Rates.
For well qualified buyers, interest rates are very, very low. Granted they are not at all time historic lows, but they are certainly close! Despite the turbulence experienced in the mortgage and real estate industries in 2007; there is no indication that rates will rise in 2008.
- Incredible Deals Are Everywhere.
Whether you’re a first time home buyer, or a first time investor, there are incredible deals to be found. While there is a lot of attention being paid to the opportunity to purchase foreclosures, you don’t even need to try your hand at that, because so many properties (which are not in foreclosure) are greatly discounted. Sellers in distress in particular, are often willing to entertain offers they would never have dreamed of accepting a couple of years ago. With certain markets experiencing home value declines of 30%, buying in this slow market may be the best time for you to venture into homeownership or real estate investing.
- Talk About Having A Lot Of Choices!
The real estate market is literally flooded with homes for sale. As a buyer you have a greater selection of homes to choose from now, than at any other time in recent memory. Finding your dream home now (without the competition of other buyers) may be easier than ever.
- What a Great Time To Trade Up!
If you’ve had your eye on a larger or more luxurious (thus more expensive) home, and have been waiting for the opportunity to upgrade, now is your chance. While you may have to sell your current home for less than you’d ideally like; you’ll make up for the discount you grant your buyer, by the discount you save as a buyer on the larger, more expensive home.
- Investing in Private Real Estate Now, Will Earn You Big Bucks Later.
What goes up must come down, and just as the real estate market is down currently, it will eventually go back up. If you have the capability of investing in real estate now, and plan to hold onto the property for the long term, you’ll see the day when your investment has earned you a healthy profit.
- Mortgage Acceleration Products Are All The Rage.
Newly emerging Mortgage Acceleration products have come on the market, making it easier and faster than ever to pay off your mortgage, often times with no change to your spending habits. By choosing to use a mortgage acceleration product now, you will earn equity in your current home faster than ever. That equity can then be applied towards buying an investment property or upgrading to a larger home while prices are down.
- Rental Rates Will Be On The Rise.
History has shown that when the real estate market cools, rental rates heat up. If you’re contemplating purchasing an investment property, or small apartment complex, you’ll be able to command higher rental rates than during the peak of the housing market. With low rates, low prices and rental rates rising, 2008 might be the perfect year for you to become a landlord.
Ed Craine is the CEO of San Francisco based Smith Craine Finance, an award winning mortgage brokerage. He serves as Vice President of the California Association of Mortgage Brokers, and has been investing in real estate for more than 25 years. Ed holds an MBA in Finance from Cornell University and is a contributing author to several NY Times Best Selling Books. Visit http://www.smithcraine.com
Article Submitted On: January 02, 2008