Ladies and Gentlemen, it’s been a good ride. Low interest rates have been here for a long time. Beginning with Greenspan’s Fed, and continuing through to today. But folks, they won’t stay for much longer. My crystal balls, remember I collect them, tells me the rates could rise up to 7% before the year ends. Just look at the chart on the left to see that conforming rates have, indeed, risen of the past 90 days.
Wow, you say that’s a huge interest rate, and yes it is, for first time buyers or move-up buyers who got into the market within the past 8 years. But guess what? It was the interest rate I generally saw with every single property I’ve ever purchased. So if you are still toying with the idea of buying your first home, what are you waiting for? This is a GREAT time to buy with the $8000 tax credit still available until April and interest hovering around 5.5%.
If you have been in your first home for about 5 years, Uncle Sam has given you a gift as well. You are eligible for a $6500 tax credit if you move up into a house less than $850,000. Yes, I know that is hard to do in Foster City, or San Mateo, but it can be done if you are diligent in your search. If you are willing to do sweat equity on a property you will gain in equity and get a better buy. The majority of buyers today don’t want to get their hands dirty. They want it all done for them when they buy, so they pay for that in the price of the house. Be smart and find a house that you like that has been on the market for a while, and take advantage of that. Now, jumbo rates won’t be needed if you are able to find a house within the price range Uncle Sam has set for this tax credit. So it is worth a look and we’d like to help you look, too.
What are the consequences for waiting? Higher interest rates will lock more and more people out of the market. Housing prices have not gone down and further in the past couple of months, so if you were thinking you could time the market, you have already lost that bet. Your personal afford-ability index is all that counts and you can talk to your lender, or one of ours, for a free review of your situation.
Houses begin to come on to the market just after Super Bowl Sunday and our market begins to heat up at that time. Not only will there be more to choose from, but there will be more buyers competing for the same houses, and yes, we are seeing multiple offers again, so it’s silly to wait if you are thinking about buying.
The Wilkas Group is certified to help buyers and sellers of Short Sales and Bank Owned Properties. These are the sweat equity properties that will get your the most bang for your buck. The Fed has kept interest rates low and it will be a real shame if you don’t take advantage of this while it lasts. It will not last through this year. My guess is we will see increases begin by mid-year. What are you waiting for?
Here’s some of what’s for sale in Foster City now.
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