Good news! The Feds have cut interest rates. Interest rates were already pretty good but with the sub prime mortgage issue, people still weren't borrowing. When the real estate market is down it affects a multitude of other industries---the mortgage industry, the construction industry all the way down to the service industry that is real estate related, plumbers, electricians, housekeepers..........
The reaction from the federal reserve to cut interest rates is in response to the toll all of these industries have taken and is hoping that it will have a positive effect!
So let's see.
- The cost of housing is down (about 26% in our area)
- The inventory is up
- Interest rates are down
- There are many motivated sellers out there
Looks as if this is a great time to buy!
I continually am asked "But is this the bottom, I only want to buy at the bottom." The question I must ask is " Why do you want to buy property here?" If your answer is to have a place at the beach either now or for retirement, then does the bottom really matter? No one wants to overpay for anything but price is always relative to time and need. If you want a place at the beach and can afford a place at the beach then buy a place at the beach now. I'm not saying shop around or pay full price. You still must do your homework (or have your Realtor do it!) You have to know what you can afford, what properties are selling for, and be prepared to make an offer on a home/land you want. If they won't sell it for what you are willing to pay, then find another property who will!
Real estate has always been a good long term investment. A lot of people made some quick money the last few years in real estate, but that is not the norm. However, real estate will always (there are exceptions of course) appreciate over the long term!
I bought a home here at the beach when I was ready and able to buy. Whether it was the bottom of the market never even entered into my decision. I had a budget, I knew what I was looking for and when I found it at the price I wanted--I bought it! I now have a home at the beach, something I wouldn't ever give up!!
If you are looking to buy something cheap and turn around and sell it for a huge profit next year, my advice is don't buy. If you are willing to buy something and hang on to it for 5 years and make a profit, then buy.
Here's a good deal for you--a 2 bed/1.5 bath townhouse on the beach side of Hwy 98 for $220,000. It's an older building, no association fees, steps from the water, and could probably benefit from a contemporary touch! I sold one a little smaller earlier this year for $190,000.
You might be able to get it for right around that price! Let's say you get it for $200,000. At 90% financing (20,000 down). Your mortgage (I estimated high at 7% interest) payments would be a tad less than $1200/mth. This does not include taxes and insurance. So lets add another $400/mth to that ----So for $1600/mth you can have a vacation home at the beach. Rent it out a few weeks every month and you can lessen that cost. Go in with other friends and family and reduce it even less!
Obviously not every one can afford a 2nd home- but for those who can, this is a good time to make some offers!
Mexico Beach's Art and Wine festival is at the end of October. This is one of the largest events in Mexico Beach, one you don't want to miss! We have some fantastic local artists as well as artists from all over the area who display and sell their art. There is an auction as well and plenty of wine! Its at the beautiful Driftwood Inn right on the beach. If you are planning to come and spend the weekend, you need to make reservations right away.
Mexico Beach is also having a city wide yard sale October 6th. You'll see several tables set up on Highway 98 as well as signs directing you back into the neighborhoods. Some of us have been saving up all our "junk" for you to buy as your "treasure" all year!!
As always, please feel free to respond to this blog, or email me directly with any thoughts, questions, concerns or opinions!!!!
Have an absolutely wonderful week and weekend!
Don't forget to go to church on Sunday, pray for someone, and count your blessings!