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Articles
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| A TIMELY MESSAGE FROM THE |
savhsu writes, "Hearing the "doom & gloom" about the national real estate market on the news everyday?
How is it effecting Savannah, So how does it affect you?"
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Thank you for taking a minute to read our brief message. If you or anyone you know are thinking about purchasing a home or investment property this
message may be of interest to you.
Mortgage interest rates, which have been at all time lows in recent months, are predicted to increase as soon as Monday, June 4, 2007!!!! There is an excellent selection of homes on the market in all price ranges & all areas of Savannah.
Sellers, largely, have priced their homes in line with a “normal” market”.
If you’re considering purchasing a home, but think it better to wait until prices “bottom out”, that may not be the smartest move.
Cheap Money" is predicted to get harder to find in the coming months (as soon as 6/4/07!) & there is currently plenty of inventory – it’s a GREAT time to BUY!! ** IF prices did drop dramatically, and that’s IF, by then if interest rates are up…. You save nothing, as a matter of fact you’re costing yourself. Consider the following generic example:
- A home, selling for $150,000 today with mortgages available at about 6.25%, with 5% down would render a house payment (principle & interest, not figuring in homeowners insurance, taxes or flood insurance if needed) of roughly $877 per month.
If the same home were reduced in a few months to $135,000 (that would be a fairly deep cut in this price range, but for examples sake) & interest rates did climb, lets say in the neighborhood of 7.5%, with 5% down that same principle & interest payment would climb to roughly $891 per month.
So you have a less expensive purchase price but a higher monthly payment and less of that payment going towards your principle (i.e. your equity) each month.
If the house were to be reduced & sell at $140,000, with the same 5% down at a higher rate of 7.5% the monthly payment would soar to roughly $926!
Even at 7% we’re looking at $140,000 costing roughly $882 per month, principle & interest -
Yes. I hear the news everyday, too. But please understand that these reports are based on broad information, written with a broad stroke. The markets that are in dire circumstances are largely north or west of here; New York, Texas, California & south, in Florida. Our section of the southern east coast, from about Charleston to Jacksonville, includes some of the most sought after areas for people to move, including the Savannah area. Because of climate, cost of living, quality of life, and many other reasons, our area is a popular choice! Even in this slower market of the last several months, the Savannah area is holding it’s own.
So, the time to buy is BEFORE the interest rates take an upward turn. Today, with a well negotiated fair price, and the still comparatively low interest rates, a "win-win" deal isn't difficult to come by!
So if you - or anyone you know - are thinking about purchasing or selling a home in the Savannah area please call Susan or Syril, The "S" Team of Keller Williams Realty Coastal Area Partners! We are committed to personal & professional service and dedicated to finding our buyers the perfect home for them and making our sellers’ experience as pleasant as possible – and always, buyers or sellers, at the right price in the right time frame. We work in all areas of
Savannah, all price points, single family homes, condos, even commercial property! Call us TODAY!
*** FREE HOME WARRANTY ***
With Susan or Syril as your Buyer’s Agent you will receive a FREE One-Year Home Warranty on your newly purchased home!
And... Ask us about the unique "Lock & List" program making it possible to give your listing the edge of the protected lowest possible interest rate for your potential buyers!!
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Posted on Jun 01, 2007 19:01pm.
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