Home Selling in Skokie>Question Details

Jackie, Real Estate Pro in Skokie, IL

is this an ok time to sell my house in skokie. want to leave the area

Asked by Jackie, Skokie, IL Sun Jul 5, 2009

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Regardless of neighborhoods, while the interest rate is hovering around 5%, with a predicted increase to about 6% once the gov't stops buying mortgage backed securities in March '10, EVERYthing is more affordable NOW vs once the interest rate increases. Without seeing your home, its a shot in the dark whether you will sell fast or slow. If you price it right, buyers will come. In ORDER to price it right, you need a professional in the area who knows the right research to give you an accurate range and timeline to expect.

Here's a great description on the above explanation from my friend TOMMCGIVERON.com:

"The government purchasing of mortgage backed securities is nearing an end. To quote, Steve Harney, national residential real estate expert, “When the banks have to lend their own money to people on a 30 year loan, they’re not going to be satisfied with 5%…”

If you’re frequented my website, you know that I pay close attention to what’s happening in the real estate market. I do this so I can be a strong source of valid and useful information for my clients and my readers. What I’m going to cover in this article is going to be like smelling salts that wake you up from a daze.

The Fed will gradually slow the pace of the purchasing mortgage-backed securities (MBS) in anticipation of a full execution of the program to keep the mortgage interest rate low by the end of March, 2010.

It marks an extension of the MBS-purchasing program past the previously anticipated year-end date of December 2009. The slowing of purchases is intended to “promote a smooth transition in markets” as the government ends its participation in the agency MBS market. Basically, the government is going to stop buying mortgage securities in March, 2010.

To implement the gradual slowing of agency MBS purchases, agents acting on behalf of the Federal Reserve Bank of New York’s open market trading desk plan to reduce the average weekly purchase amounts beginning with the reporting week that starts September 24, according to a NY Fed statement.

Will the real estate market be strong enough to withstand this slowdown? Are banks and their investors, willing to invest money into such an unsteady market area, such as the current real estate market? This is the big question…is the party [of low interest rates] coming to an end?

With the largest purchaser of MBS, not buying up these assets (helping turn money over quickly for banks and their investors), will banks be apt to continue writing mortgages at 5%?

The answer is no.

So rates will go up after March, 2010.

Question is, how high and will buyers continue coming out to buy? I would say the answer to buyers still buying is a big fat YES [they just can’t pass up the fact that prices are down 35% from peak]. Additionally, as mortgage interest rates go up, prices must drop [hear that sellers?]."
Web Reference: http://www.WilsonLiving.com
0 votes Thank Flag Link Tue Jan 19, 2010
The market is picking up, buyers are taking advantage of home prices in Skokie and the surrounding area. Pricing your home is key. Skokie has one of the finest schools, you should have no problem selling your home.
0 votes Thank Flag Link Mon Jul 6, 2009
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