Deborah Berk…, Real Estate Pro in Babylon, NY

Why are prices consistently going down in the areas we are looking at, Merion Station Wynnewood Bala Cynwyd? It makes me not want to buy, because

Asked by Deborah Berkman, Babylon, NY Tue Oct 20, 2009

they are still in a freefall.

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Despite the recession and its underlying causes, Main Line real estate continues to trade hands. Based on September 2009 statistics of single-family homes, the supply/demand ratio indicates an unbalanced market, heavily favoring buyers in Lower Merion Township. However, when you compare today to that of September 2008, the market is definitely operating more efficiently, due primarily to government intervention motivating homebuyers off the sidelines. Economic conditions remain dire and the federal tax credit for first-time homebuyers expires at the end of the year, but available monthly data since May 2009 suggest that the broad decline has ceased.

Don’t be afraid of the market…Take advantage of it, especially if you find the right home that meets your needs. You’re looking to buy on the Main Line and are probably well-versed in its advantages today and into the future. Good Hunting!
0 votes Thank Flag Link Wed Oct 21, 2009
When prices go down, mortgage interest rates go up. The prices are pretty stable right now, and the interest rates are at an extremely historic low rate of 5%. Use a mortgage calculator to determine whether it is more feasable to wait (and hope) for prices to go down which will be at a higher interest rate -or- buy now at a low interest rate. The third and worse case scenerio is that the house prices and interest rates both go up. Since no one really can say for sure which it will be, you only have a 30% chance it will go in your favor if you wait. And will the home you want be there....there may only be a 10% chance of getting the home you want. My bet is on buying now...
0 votes Thank Flag Link Wed Oct 21, 2009
Hi Phillybound. I wanted to add a few things to what my colleague Terrence stated.

First, it MAY make sense to buy today, rather than wait, because you likely will get more for your money now than you will in even a year or two. If you wait, you should have more money to put down, however, if the market rebounds -- as predicted -- the price of homes you're looking at may very well go up...perhaps above your price point. All that said, we don't have a crystal ball and noone KNOWS what the market will do in 6 months, a year or 5 years from now.

Second, I would guess that you haven't hired a Realtor yet. I would HIGHLY recommend that you interview Realtors to represent your interests as a buyer (the GREAT news is: this all-important representation will cost you NOTHING). After interviewing 2 or 3, choose the one who you feel listens well and is experienced, honest, responsive and will work hard for YOU! No two buyers' situations are identical.....your Realtor will be able to give you the BEST advice possible for YOU, after learning more specifically what your circumstances are. And, when you find the perfect home for you, your Realtor will be able to negotiate on your behalf to get you the best investment possible! Without a doubt, a Realtor will ultimately save you time, stress -- and, yes, MONEY, too:)

Please feel free to call me direct at (610) 324-5240 to discuss your needs in further detail. I will do my best to help you in any way that I can.

Good luck and blessings to you...........

Warmly,
Judy

Judy May, Esquire, REALTOR
"A Refreshingly Different Real Estate Experience"
http://www.JudysFineHomes.com
Judy.May@Century21.com

CENTURY 21 Alliance
2828 Audubon Village Dr
Audubon PA 19403
O: 610.666.0202 x. 226
C: 610.324.5240 (preferred)
F: 610.666.1942

Search 1000s of available homes!
http://judysfinehomes.com/homesrch.htm
0 votes Thank Flag Link Wed Oct 21, 2009
That's because we are not out of this mess yet. You do, however, need to look at the big picture. If you are planning to stay in a place ten years or more, you should see your homes value higher than when you started. Yes, even in this backwards market. There are ups and downs in the market which occur pretty much regularly. Currently the market is still in an even or downward trend. Freefall? No. If you need to buy, then buy. If you don't need to buy, then keep saving your money for a bigger down payment, keep your credit clean and in a year or two you should have a lot more money to put down on a home.

Hope that helps,

Terrence Charest, e-Pro®
REALTOR®
Century 21 Associates
905 Easton Road
Willow Grove, PA 19090
Cell (Preferred): 877.614.1494
Office: 215.659.5250
Fax: 215.659.5550

http://www.HomesForFreedom.com
tcharest@HomesForFreedom.com
“Giving to Those Who Gave”
0 votes Thank Flag Link Wed Oct 21, 2009
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