StreetInsider.com - Schiff: Look Out Below! Home Prices to Fall Additional 20%

StreetInsider.com - Schiff: Look Out Below! Home Prices to Fall Additional 20%

In my previous post I pointed out that interest rates are going up and in most neighborhoods in our local market prices are still dropping. The Exception: Neighborhoods close in to Bellevue and Seattle are seeing impressive sales. This article is an accurate snapshot of the U.S housing market; but keep in mind every market is different and micro housing markets exist in every area.

Time to Jump off the Fence

The attached article (Mortgage Rates Surge in Recent Weeks) posted on my blog may be enough motivation to buy a home (If you are in the market). Rates will not go lower, although I believe in most of our local markets home prices will still drop a bit. It really depends on the location. The closer you are to the hub of Bellevue and Seattle I am seeing strong sales activity and less inventory. As you get further from the hubs inventory levels are still high and pricing your home to match the market is critical.

Mortgage rates surge in recent weeks, nearing 5% - Dec. 30, 2010

Mortgage rates surge in recent weeks, nearing 5% - Dec. 30, 2010

http://seattletimes.nwsource.com/html/businesstechnology/2013611428_homesales07.html

http://seattletimes.nwsource.com/html/businesstechnology/2013611428_homesales07.html

Great article, The truth.

In all of my years in Real Estate (23) you can usually spot trends and make predictions as to where the market is going. This is the first time I have to admit "I really do not know". At the beginning of 2010 I believed we were close to the bottom, I was wrong, 2011 will be interesting. The one truth in Real Estate that never changes is " Location, Location, Location. Homes in the most coveted neighborhoods continue to sell at a fair pace and they have depreciated less than their competition.

Matt