Don't let the Media fool you?

Hi Everyone!

I'm going to do my best not to get political during this blog. I will tell you that I"m not a big fan of the Media and I believe they are the largest contributing factor for our country going down the tubes. I believe the last two and a half years of the home price tumble was and is all media related. They have an agenda as they always do and the American people just line up and read their stuff whether it's true or not.

So how is the media fooling you? They are still telling you this is a bad time to buy. We have a customer last week who had wanted to do a short sale offer. It took months before we finally heard and during that time the Interest rates went from 5.875% to 6.5%. The prices hadn't changed in the past few months as they waited for an answer on their short sale offer, but look what happened to the cost of buying the home!

Price is important, but it's not the most important factor when buying a home. Our interest rates are going to go up and they need to go up for the economy's sake. We have all gotten used to the great rates of the past 5 years or so, but I fear that this is about to end. If so, many of you will have missed out on the best buying opportunity we have had here since 2003.

Once these rates go up, like gasoline, I will be very surprised to see the Interest rates come down below 6% or even 7% soon. My guess is once the election is over, it may get worse and we could see our interest rates back up over 8% like they were in 2001 and 2002. It wasn't that long ago ya know!

Why did the Media work so hard to kill the Real Estate market? To me it's very simple. Aside from the Iraq wore, the country as a whole was running fairly good. Most consumers were feeling pretty secure in our economy. After all, there can be a ton of things going on in the world, but as long as the individual is getting by ok and securing a good life for their family, then things are relatively good! If you remember, it was May of 2005 when the Media started on their rush to destroy the economy. The bubble was going to burst and don't get caught with your pants down! As they continued this throughout the rest of 2005 they started making a dent. Low and behold, just in time for the election in 2006, the Media convinced the masses that the housing bubble was done and foreclosures, inflation, home prices and more have destroyed our country's economy and of course it was the Republicans that did all this. It was very political.

Would we have had a bubble burst? I believe we were actually getting pretty close back in May 2005 for our prices to start adjusting. I think we probably would have had a 15% maybe 20% correction which is fairly normal. However with the Media harping on everyone, the drop was closer to 35% or more in some areas of Florida.

The moral of the story is don't wait to much longer to buy your home. If you are serious about buying, it will be come more and more difficult. Home prices are low but with Interest rates fast approaching 7% or more, you will not be able to buy the home you want as the payment will be too high.

As always, if you have any questions, please don't hesitate to ask or call. Thanks for using www.melbournehomesearch.com and www.mitchrealty.com .

Have a great night!

Mitch

Housing Inventory is starting to go down!

Hey Everyone!

Finally, after two years of rising inventories, our inventory for single family homes in brevard is down under 7,000 homes for sale to 6940 and condos and townhomes are down from 3500 to 2504.

This is extremely good news for our market. To me, it means we are pretty much at the bottom of the market and that as each month that goes by our lower priced homes will hold firm. Homes that are still over priced will still sit on the market a long time and will probably not sell until they become realistic.

So what does this all mean to you, our home buying customer? It means that if you have been waiting to pull the the trigger on buying a home, this might be the time. As inventory eases over the next several months, the prices will flatten and then start to rise again. My belief is by the end of this year we should be starting to see an uptick in pricing as the inventory will be low. According to our Supply and Demand Curve, lower inventories mean higher prices.

That's all for now, I just noticed this today and thought it was important enough to share with you. Remember, nobody really knows when the bottom of the market is, until it starts going up...by then you have missed it!

If you are thinking about when is the right time to buy, this is it!

Call or email if you have any questions.