When are home prices going to rise

Please read the article below that I copied in full.

Everyday I get asked by sellers and homeowners "When are we going to be out of this?" Well if we use the information below as a guide by 2009 home prices will be finally steady.

The next most common question I here from Sellers is "The spring market is the best market should I wait till then to sell?" The answer to that would be a big "NO!!" If you wait until Spring you could lose an additional 2% more than now!

Than I hear "If I wait to sell a couple of years the market will be back." In a couple of years the market will no longer be declining and finally staying steady. If we go by the opinion below your home will be worth a full 4% less in a couple of years than it is today. And that is not taking into consideration depreciation based on condition. Roofs, furnaces, windows have all aged in that time and maybe getting to the point of replacement. 2-3 years can be the difference between having to replace a roof or selling it the way it is.

We are in a market of "Equity Preservation". By that I mean when you price your home you want to underprice your competition AND price your home lower than recent sales.

"WHAT?!?!" you're now screaming.

Let me explain.

We are currently losing value of 0.5 to 1% per month. A recent sale is one that has closed in the last 3 months, better yet the last month. Like I just said it is a sale that has CLOSED. Well that means that the offer to purchase was made 1-2 months prior to the closing. So if we take a sale that closed 1 month ago on an offer that was accepted 2 months prior that is a 3 month period of further depreciation. At 1% per month that is a full 3% of loss. If you price your home at or above the Sale price of that recent sale and your home sits on the market for over 30 days your home has now lost 4% in value.

A well priced home will sell and will sell quickly.

That is Equity Preservation.

Bankers: Worst is yet to come ( BOSTON ) – The chief economist for the Mortgage Bankers Association is advising members not to expect a recovery in the housing markets until 2009. The MBA’s Doug Duncan says he expects national median home prices to fall between 2 percent and 4 percent next year because of an oversupply of homes from foreclosures. Duncan said California , Texas , Arizona and Nevada would be the hardest-hit states because of speculation by investors, while Ohio , Michigan and Illinois would follow because of job losses. He said he expects mortgage originations to be off 15 percent this year and another 18 percent next year. Reprint from U.S. News.

I can help you with every aspect of buying or selling your home because I’m experienced, because I’m professional . . .and because I care. The relationship between a home buyer or seller and their agent is based on trust, shared goals and understanding. I strive to continually improve and to do this I listen and take the needs and wants into consideration. I'd love to hear from you!

To get a fair Market Value of your home call Bobbie Files.

Bobbie Files

Your Bristol County Realtor
508-238-5000 x.296 Office
508-789-0217 Direct

bobbiefiles@kw.com

Visit my website at www.berkleymass.com for accurate real estate information.

Are you waiting to buy?

You first time homebuyers or present time renters... Are you ready to start your exciting but 'scary' property search? Homebuying is a big step...but it shouldn't be frightening...learn to enjoy the process...see it as a 'journey' from rent receipts to 'buying bricks'!

Remember they taught us in school the three major components essential to every family...food, shelter, and clothing...'homebuying' is the biggest ticket item in that picture.

Another thing, is the present market worrying you or causing you to have second thoughts as to whether you should buy now or delay your purchase until better market conditions return?

Let me give you some ideas to consider...

*If your job is relatively stable, and your finances are under control, and you plan on staying in your home for at least 4 or 5 years, then consider purchasing now...interest rates are extremely good...they may not be when the market turns...also if you're waiting for property values to 'bottom out', an increase in interest rates could negate any savings in purchase price...today's sluggish 'buyers market' provides opportunities to capture some additional funds for closing from anxious sellers...and there is plenty of inventory to select from...in other words, let the market 'work for you'!
*Are you ready to buy but lack confidence in our economy...are you leary to 'commit' to a large purchase such as a home? Maybe you can consider looking at properties less expensive than you originally intended...something less expensive to maintain...perhaps not quite so large...something smaller but more energy efficient...instead of that 2,500 square feet 2 story colonial, maybe a 1,600 sq. ft. 'cape cod'! Remember to factor in taxes and insurance. Some homes that appear similar can be more affordable...crunch those numbers...get good at it.
*If you're in a 'moving up' category, the status of the economy is of negligible consequence...what you lose, if anything on your sale, you should be able to make up on your purchase...in fact your purchase can achieve a greater savings than what you may have lost on your sale! Am I getting you confused? Reread it until you get it!

If you're still confused this is where a true real estate professional comes in!
I always advocate for the use of experienced real estate professionals which make the homebuying process a pleasure. Without going into detail, remember the agent that is showing you homes and explaining the financial aspects to you will be paid from the seller's proceeds...in essence you have a true real estate professional 'working to find you a home' at no cost to you! It is bewildering to me why many potential homebuyers take it upon themselves to accomplish this task on their own! You wouldn't pay for a flu shot if you could get one next door at no charge.


How do you find a 'true real estate professional'? It's not as difficult as you may think, call Bobbie Files. I will provide you accurate, reliable service. Putting your needs FIRST.

Bobbie Files

Realtor of Choice

Start your search at http://www.berkleymass.com/

Are we getting a local train station??

Recently officials for Transportation and Southeastern Regional Planning & Economic Development District members met with the City of Taunton to discuss the options for the new South Coast Rail project.

The South Coast Rail project will connect Boston with Taunton, New Bedford and Fall River. They are weighing the 3 options available: connecting from Stoughton; relocating the Lakeville Station to Middleboro; or going through Attleboro. The Attleboro option being the least desirable to Taunton because of the number of streets that will be affected.

Regardless of how it gets here it looks like a commuter rail is coming.....not for another 10 years or so but it is going to get here.

I am curious. What is your opinion? Are you in favor of the commuter rail? Do you feel it will improve property values?

Let me know what you think.

Bobbie Files
Your Bristol County Realtor
bobbiefiles@kw.com

Just really how wide spread is the subprime market disaster???

WSJ - Subprime mortgage have been cropping up in surprising spots. Typically, these loans to home buyers with the weakest credit were concentrated in lower-income or economically depressed areas.


But over the past few years, a large chunk of the subprime-loan market has shifted to higher-income metropolitan areas. In many of those wealthier areas, the delinquency rate has increased quickly. In the Sacramento, Calif., region, where the median household income ranks among the top 10th of major metropolitan areas, the portion of subprime mortgages delinquent for 60 days or more hit 14.1% in December -- more than four times the level a year earlier. Other parts of California, as well as sections of Florida and Massachusetts -- especially those areas where housing prices have surged -- also logged rapid increases in delinquencies.