What is happening to home prices in Salt Lake City?
It is amazing to me. I'm still talking to buyers who are thinking prices are still coming down. When will the bottom hit? What is the bottom? How will you recognize it when it's here? How will you know when it's over? You know the reality is, is that even in a sellers market, prices get reduced. I think a buyer will see a price drop, and immediatley they think "oh, the sky isn't done falling" LOL. It's just plain crazy.
Buyers who are trying to time the bottom, will end up missing it before they even know it's come and gone! Fact is, trying to make finite predictions on the market with pin-point accuracy is impossible. There are just too many variables, there is no way anyone from the public could tell what is going on, and many so-called real estate professionals can't tell either. Oh hell, everyone thinks they have their pulse on the market, and they understand this and that, and that when the FED lowers interest rates, mortgage rates should fall (as if they are the same thing), and there otta be law for this, and on and on and on.
There are many things that have to happen in order for a buyer to buy a home, and that is how they have to happen, ...in order. By the time buyers get their #@$% together to buy, they usually have already missed the best buy. I've missed a hundred best buys. If only...Shoulda...woulda....coulda.....
Which homes and which neighborhoods are popular? What is selling and what isn't? What price bracket sells the quickest? What holds it value longer? What has the greatest resale value? When should I buy? Where should I buy? Who knows the answers to these questions? Who knows how to find the answers to these questions? Where are the answers to these questions? And, when can I get the answer to these questions?
If you don't have to drive your car anywhere, you don't really need to buy gas for it. If you have to drive across town, and you're low on gas, when's the best time to buy gas? Would you just buy enough to get across town, or would you fill up? Would you risk driving across town without getting gas, not getting to your destination because you're sure gas is going to drop tomorrow by a nickel?
This just came out from my lender....
EFFECTIVE MARCH 31, 2008, THE MAXIMUM LTV FOR CONVENTIONAL MORTAGAGES WILL BE 97%. NO MORE FLEX 100 OR MY COMMUNITY MORTGAGE 100. THE MINIMUM FICO SCORE FOR THESE 97% LTV PROGRAMS IS 680.
EFFECTIVE APRIL 11, 2008, UTAH HOUSING WILL RAISE THE MIMIMUM CREDIT SCORE REQUIREMENT TO 660.
AS OF RIGHT NOW, WE CAN STILL DO FHA LOANS WITH DOWN PAYMENT ASSISTANCE PROGRAMS SUCH AS NEHEMIAH.
When is the bottom for mortgages gonna hit? Let's hold off buying until there are no downpayment assistant programs. When will that happen?
Guess what? Nehemiah will be going away soon too. The writing is on the wall. Whle you are waiting for the bottom to bottom out, you are losing money because you're paying rent instead.
You could already be building equity in a home...yes that's right, appreciation is still happening, and writing off your mortgage interest, but no, you had to wait for the bottom. Rising interest rates could cost you more than the money you might save by waiting for the bottom to hit. Even worse, you could lose the ability to qualify for years while waiting for the bottom to hit. And last but not least, it is far easier to absorb 5 or 10 K or even 20K over 30 years than it is to have to come up with an extra 100 dollars every 30 days.
The time to buy is now. The time to sell is now. Bottoms Up! Oh, and by the way, if you really want the answer to these questions, call me. I know.
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