Don’t Panic!
September 16th, 2008 Categories: Alexandria Dirt, Arlington Dirt, Falls Church Dirt, McLean Dirt, Real Estate Finance, Reston Dirt
It would be so easy to work up into a lather with all of the gloom and doom financial news. Everywhere we turn some major wall street financial institution is filing for bankruptcy or being taken over. Mortgage companies are in trouble and/or crumbling left and right. The Federal Government decided to bail out Fannie Mae and Freddie Mac in order to increase the availability of mortgage finance and to add liquidity to the mortgage bond market.
Oh and then there’s the AIG mess – the government is supposedly considering lending tens of billions of dollars to bail them out of their recent woes… YIKES… And today, if all that weren’t enough, the feds decided against lowering the fed funds rate stating that they believes the mortgage interest rates are already low enough to spur future economic growth.
It would seem that in fact we’re headed for mass destruction and dismay. In fact, that’s the farthest thing from the truth – at least from the housing perspective. Consider this –
Interest rates have tumbled beginning with the Fannie/Freddie news and are now once again below 6% – hmmm
Inventory of homes is still fairly high and there is generally a plethora of choices
For a consumer that has good credit and assets, this is the BEST TIME EVER (yes, I did say the best time ever) to make that home purchase. Can I guarantee that home prices will not continue to go down? NO Can I guarantee that home prices will appreciate at some ridiculous rate over the next 2 years bringing “flipping” back into vogue? Of course not. But I can say that conditions are actually favorable right now for the housing market to correct itself. NOW is the time rather than when buyers have to enter into bidding wars against each other. NOW is the time rather than when buyers will have to give up some of their rights in order to beat out someone else.
Every action has a counter-action. When builders realized that they would 
have home surpluses, building slowed and in some cases even ceased. When we come through the cycle, they won’t be able to gear up quickly enough to meet future demand and there begins that cycle again with higher prices and more demand. So… just stop for a moment to consider that perhaps, just maybe, now is the time to begin thinking about a change.
I look forward to your call to discuss your home needs – both selling and buying.
Happy Tuesday
Jennifer
Serving all of your real estate needs in Arlington, McLean and the entire Northern Virginia Region!
Contact me today for a free home valuation or buyer counseling session! Fall is here!
Like what you’ve read? Subscribe here.
Copyright © 2007 Arlington Dirt Real Estate 
I agree that this absolutely a great time for those with good credit and income to buy. The conditions are perfect and it’s what I call the classic “Rich get Richer” market.
There are so many good deals to be had, yet not many people can buy, so only those with the credit AND the cash are able to take advantage.
As much as I don’t like the government take over, it seemed necessary to add stability to the market.
Aloha,
Keahi
Agreed, now is the best time to buy if you have the ability to get a loan or pay cash. Real Estate in South Florida hasn’t come to a dead hault. I showed property to clients from out of town today, drew up a rental agreement, and am ready to close on a house next week. People here are not scared of what is going on, and seem to think that the market favors them.