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Money Talk

Real Estate Market Analysis

Some months ago, forecasters were suggesting that the real estate market would be in it's early stages of recovery by now. There is a very simple reason this isn't so. The entire financial world is fearful that the number of borrowers with subprime mortgages who have yet to default may actually climb higher in the near term, rather than taper off. There are hundreds of thousands of adjustable rate mortgages out there that will go through their first adjustment within the coming year and a half, and a great many are expected to lead to defaults and foreclosures.

The fear is widespread. Though many investors have gained confidence to put their money once again into jumbo mortgages and other non-conforming loans, fear still fuels a tremendous reticence among potential investors, buyers and sellers to participate in the real estate market.

The upheaval that began more than two months ago has been called not only a subprime crisis, a crisis of liquidity and a crisis of collateral. It has been each of those things, but most of all it has been a crisis of central banking. In short, there really aren't many places in our financial markets that aren't affected strongly by the credit problem. The major damage is probably already done, and the present situation will likely settle out over the coming year.

Here are a few important things YOU should do right now:

  1. Even if you are not in the market for a loan right now, make sure your credit standing is as solid as possible. Many affected people didn't plan in advance to ensure their credit would qualify them for the best possible financing.
  2. If you are in the market for a home loan, or know someone who is - now is the time to work with a real qualified professional who can keep you informed of the changes in the market. Now is not the time to play risky games trying to scour the entire nation to find someone who promises to save enormous costs, or deliver rates that are too good to be true.

Your home and financing are too important, and times have changed. We are here to help and advise during these volatile times - and would welcome calls from you, your friends, family, or coworkers.
©Copyright 2008. Every effort has been made to verify the information herein, but it cannot be guaranteed, nor should be used as a substitute for professional advice.
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