Diary of a Whimpy REALTOR
So as the day winds down and I sit at the dentist’s office for my son’s appointment, I reflect on the housing market in the Philadelphia area. See, I now understand why there are so many people on the fence about purchasing a house, and I feel it first hand.
My wife and I are currently refinancing our mortgage for a lower rate, and jeez are we getting a decent rate, and that I am finding is part of the problem. A second part is home-buyers in the Philadelphia area has a large surplus to choose from, and they want to find that “great deal” and not purchase a house that they will lose value on. So this is a two-fold problem.
Well I am a believer in not focusing on the problem, but finding a solution. When it comes to the interest rate, my professional opinion is that the rates should increase. Why? Did you notice what happened when the boom was happening? The banks deregulated, and housing prices where increasing spurring a strong seller’s market, and people bought; even purchasing beyond their means. People are on the fence waiting for the bottom, well we have hit bottom already; and the only direction I see rates going in the next few months is up. Solution, take the opportunity while it is there. Interest rates are at an all time low, and I am not one for clichés, now is a perfect time to buy with the rates being as low as they are; and the opportunity many have now, just may not be there later.
Another factor is people feel they will pay more than what the house is worth. Solution, unless you are speculating on the housing market, buy and sell after two years for the tax break, it’s not going to happen. Now if you are looking to own a home, and stay put for a while, you will be fine. The best way to determine what the current market value of the house you decide to purchase is to have your agent look at what is happening in your marketplace. Yes doing a market analysis when you purchase a home is good practice and should be, no, MUST be done, and that will determine if you are getting a decent buy or not.
So now my question for those thinking of purchasing a house in the Philadelphia area, why are you still on the fence? One piece of advice if you have read this, turn off the boob tube. All the media cares about is ratings, and negativity sells. The media uses “general” national statistics, not what is happening in your local marketplace. Talk to your local REALTOR and find out about the housing market in your area. To your success and happy house hunting.