Mike Geraci

In response to the 2 previous posts...
1. It's Already Begun....Write Back To Me In 8 Months

Mortgage Rate Watch
Region: US Show Rates

This Week Last Week Last Month
30 Year Fixed
6.03% 5.88% 5.85%
15 Year Fixed
5.62% 5.40% 5.34%
5/1 ARM
5.68% 5.48% 5.67%
1 Year ARM
5.29% 5.10% 5.24%

2. I got the sarcasm, but I didn't think it was funny. It is actually a great time to buy for 3 reasons.
1 - Prices have come down over 8% on average in the past year and a half.
2 - Mortgage rates are still historically low, but won't stay that way much longer
3 - Home values will eventually get back to what they were 2 years ago and exceed that value.

So yes, it is "great, great, buy, buy, buy"......today you can buy a home for less than it was 2 years ago, still get the same mortgage rate from 2 years ago and wait 2 more years to see the value start to go back up.
We May Be In The Worst Housing Market In US History, But It Will Not Last Forever. - Sat Apr 26 2008, 07:55

If the Fed is taking steps to address economic weakness by lowering rates, that likely means that a return to faster growth, and possible higher inflation as well, is coming sooner rather than later. Supply, demand, competition for money, inflation, the economy and expectations, but it's mainly the 10-year Treasury bond (yield) that has the direct effect mortgage rates increasing or decreasing. Too much supply, not enough demand; prices had to go down and yield had to go up to attract investors. - Fri Apr 25 2008, 10:30

Andreas,
I like your strategy of building credit and building savings, but the waiting part is what is going to hurt you.
Mortgage rates will not stay where they are for much longer. They have average around 6% for over a year, expect them to go up in the next 8 months and expect property value to look almost the same in 8 months as it does now. So you will end up paying more on your monthly payment with a higher mortgage rate, especially if you are "building credit"
I have been telling home owners and buyers since 2003 that the market would turn and it obviously has, so I disagree with your first sentences. I do agree with what you said about a continued build up of homes for sale, as that is what naturally happens in a buyers market. The inventory will continue to grow throughout the summer and only the homes that are priced accordingly will sell. Remember, when the bank does the appraisal on the home, they will only use sold comps within the previous 6 months. So as prices have come down, so has the appraised value of recently contracted homes.
Another thing, as a first time home buyer, make sure whatever bank you use for your mortgage fully explains all of the available first time home buyer programs to you. Good Luck In Your Pursuit Of The Dream.

By the way the comment before yours is the most selfish thing anyone that calls themselves a professional could ever say - Fri Apr 25 2008, 07:32

It looks like the worst is behind us. Prices have declined in most areas of Brooklyn an average of 8.2% over the past 18 months. We can expect to see a slight continued decline for the majority of 2008, but prices will level off towards the end of the year. For 2009 & 2010 expect to see prices remain flat for most neighborhoods, which is better for home owners. When it comes to buyers, we should see mortgage rates increase over the next 12 months so the cycle will turn as we get into next year. - Thu Apr 24 2008, 07:30

There are many different websites to find all types of listings in Brooklyn. I would recommend three of the best and we are on one of them now. Trulia has become, over the last period of time, a great website to find homes, condo's and co-op's in Brooklyn. Another great site is trusty old Realtor.com which has been proven to get good search results. Third and most detailed is Fillmore.com...Fillmore Real Estate is the largest Real Estate Broker in Brooklyn and now throughout New York. Here are the links...
http://www.fillmore.com http://www.realtor.com http://www.trulia.com

You can always reach me at 718-907-1109 or mikegeraci@fillmore.com for more information - Tue Apr 22 2008, 09:59

Prices on newer condo developments are up there with 1 and 2 families homes in Bay Ridge. You could expect to pay a water bill when owning a home but that may be the only difference. You will pay taxes and utilities on both types of property. There are few differences when it comes to ownership rights as well. On a condo, you will pay and additional common charge (usually $150-$250 depending on location and size). - Tue Apr 22 2008, 09:20

You are right, there are a lot of factors to weigh. The most simple factor is never put money in on your way out. Always remember that you will never get back dollar for dollar what you have put into the home when the appraisal is done. As you said, the home was gutted and updated 3 years ago so you have already made it a nice place for someone else to live. If the value of the home has not decreased much over the last period of time, then it is a good time to sell. If the value has gone down considerably, then you can always add on and stay four more years until the market comes back. - Tue Apr 22 2008, 08:08