I was listening to one of my CMPS (Certified Mortgage Planning Specialist) CD's today and Barry Habib made an interesting comment. "When home prices were running high, buyers would make $10,000 to $20,000 offers above the asking price afraid that they would lose the deal. Now, people are afraid to make an offer $10,000 to $20,000 below asking price for fear that they might be over bidding. When homes weren't on sale, everyone wanted to buy. Now that they are on sale, no one wants one."
People are afraid to buy a home right now because prices might drop more. But it doesn't make sense. Historically, home prices average 6% growth. Those who bought at the top of the market in California in the early 90's and kept them homes for 10 to 15 years made a killing. There is no reason to think that the same won't happen again. Our population continues to grow and homes will continue to be needed. Prices will continue to appreciate over the long run in most markets.
Sure, we're in a period of correction, but for the long-term real estate purchaser, (those who call a house a home, and not an investment), this is a great time to purchase. You have your choice of homes, you aren't rushed to make a decision and rates are still at historic lows.
Find the home you like, get a good long-term loan and settle in for the long haul.
Larry Morris is a loan Officer with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods and Yamhill County. He is a Board Member of the Sherwood Chamber of Commerce.He can be reached at larry.morris@equipoint.com. His website is www.PDX-Mortgage.com. This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.
Licensed in: OR, WA, AL, AK, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, MD, MA, MI, MS, MO, MT, NE, NV, NH, NM, OK, SC, SD, TN, TX, UT, VT, VA,
Larry Morris is a Certified Mortgage Planning Specialist and Certified Mortgage Coach with Golf Savings Bank in Beaverton, Oregon. He specializes in USDA Guaranteed Rural Home Loans, FHA Purchase and Refinance, FHA 203k Rehab loans, FannieMae HomePath loans and conforming purchase and refinances in the states of Oregon, Washington, Idaho and California.
He can be reached at 503-421-0096, or larry@PDX-Mortgage.com.
