Exciting Interest Rates!

Interest rates are DROPPING like a rock. One day last week rates went to 5.1% on 30 year fixed rate mortgages. This low rate only held for 4 hours, but still, rates are dropping like a rock. So how do you know when to fix your rate? When will they go up? If you fix a rate are you "stuck" with it?

It can be quite a job of speculation to decide when you should fix your rate. News of the feds dropping the wholesale rate makes everyone believe the home mortgage rate will drop too. This CAN be true, but not allways. The fed rates drop as a way to stimulate the economy. The mortage rate is low due to the slow economy. So, at some point the stimulation of the economy will cause a RISE in rates instead of a drop. That is where speculation comes in!

If you fix a rate, you are not STUCK with it untill after you close on the loan. You may have to pay a penalty ($300) to get out of the loan, but you are not bound to it until you sign at closing. Some loans have provisions to fix your rate while you are shopping for a home. If the rates drop prior to you finding a home and closing on it you have a one time ability to reset the loan rate at the lower rate.

Hmmmmmm......all this talk of rates makes me want to move or refinance.......

The Real Estate GAME?

I woke up this morning with a phrase running through my head. "Buying a home is not a GAME". Often I hear other Realtors refer to their job as a "game". I can think of nothing less "game" like than buying or selling a home. It is listed as one of life's biggest stresses. To have a realtor who thinks it is some kind of a "game" is a little disturbing. I can only surmise that people in the industry who feel this way are on some sort of power trip. There is a ton of negotiation and strategy involved in buying a home. Buyers and Sellers both rely heavily on the advice of their realtor's . I view it as a huge responsibility. Some view it as a game.....

New Year, New Attitude

I hope all of my readers have had a wonderful holiday. The Thompson holiday was a busy one with celebrations and a busy work and teaching schedule. The new year brings me many resolutions. In fact, I have resolved to be a daily blogger in 2008! So check back regularly for interesting information on Western Washington and the real estate market. Nation wide it looks like real estate markets are beginning to steady. It seems (hopefully) the worst of the credit crisis is behind us and we can look forward to a year of steady or growing home prices. On a local front the outlook is even better. Buyers who were holding back on entering the market are beginning their search. Hopefully home owners thinking about a change will go ahead and list their properties now that the holidays are past and help out our low inventory! There are still "bargains" coming on the market every week for the savvy shopper. I have been seeing more sales pending at close to asking price and I haven't seen any low ball sales in a few weeks. This is good news for the sellers and a message to the reluctant buyers that now is time to leap in to the market.

Low Inventory Locally

The local real estate market has been very interesting to watch over the last few weeks. I am seeing more sales pending with incredibly low offers and seeing more houses selling above asking at the same time! It is very strange. I can only surmise that some builders, homeowners, and investors are having to "dump" properties due to financial difficulties. On the flip side some homeowners are benefiting from the low inventory of houses we currently have and selling for above asking price.

I was personally involved in making a full price offer on a house for a client on the first day the house was on the market and NOT getting the sale! The house wasn't a SUPER value, just fairly price in a desirable neighborhood where there are few houses on the market. I was pretty shocked. You think that a full price offer in this market would be a slam-dunk sale, but it wasn't.

Everyone is predicting a pick up in the market mid 2008. If so, those of you on the fence about looking for a new home should be at the ready after the first of the year to start your search and capitalize on our low interest rates and nervous sellers.

Happy holidays!

On A Brighter Note

Some great news from the National Association of Realtors:

-93 out of 150 metropolitan statistical areas show increases in median existing single-family home prices from a year earlier
-Six areas with double-digit annual gains
-21 metros showing increases of 6 % or more
-Regionally, prices rose in both the Northeast and Midwest, as did the national condo price.

Lawrence Yun, NAR chief economist, says the data underscores the fact that all real estate is local. “Some metro areas are hot while others are experiencing localized problems,” he said. “The report also shows that home prices in the vast midsection of America, from the Appalachians to the Rockies, are affordable and, perhaps, even undervalued.

Seven Random Things about ME

I have been "meme" tagged by http://www.dressagemom.blogspot.com. The rules of the game are that I have to tell everyone in Blogging-Land seven random and little known facts about myself and then randomly tag seven other bloggers. So here we go:

• I once thought I couldn't possibly love my children more than I loved my dogs. This was before I had them, and boy was I wrong!
• I think I am very funny-- not many people get my sense of humor-- but I still think I am funny.
• In my teens and twenties I was horridly shy.
• I sometimes go to bed before 8:00 (no this does not relate to living in Washington in the winter--I just would rather sleep than be bored)
• I actually LIKE watching Hannah Montana
• I was afraid to ride horses from the ages of 10-14. I wanted to, but had experienced a bad fall and would cry if I even sat on a horse. I credit loss of brain cells in college for developing my current lack of fear.
• I have been married to the same man for half of my life

Open House Fun

So what does a realtor do at an open house for two hours if they have nobody come to look at the house? I spent my afternoon at a lovely new construction house. It had radiant floor heating (which I LOVE) and speakers thoughout the house of which I am a new fan. I did spend some time working on real estate type paperwork, but then I decided to play around with my windows movie maker. I made some fun horse sale videos to upload to youtube. It turned out to be a very productive two hours. Hopefully my open house tomorrow will be better attended!