“Will the Home Buyer Tax Credit be extended?” Lately, we’re asked that question even more often than “How’s the Market?” Dr. Ted C. Jones, economist for Stewart Title, answers this with a firm and definitive “No.” He also thinks interest rates are going up soon. Jones should know. Besides his considerable qualifications, he has lunch with Ben Bernanke every week.
Dr. Jones shared those predictions, and many other useful insights and tips, at last week’s economic and real estate forum bracingly entitled, “Adapt, Mutate, Migrate or Die.” His standout fact should serve as a call-to-action for both buyers and sellers: every 1 percent increase in interest rates is approximately equivalent to a 10 percent increase in price. With interest rates currently around 5%, buyers can buy more home and sellers can draw more buyers. Sellers with no intention of buying another home may want to wait, as prices and sales volume are picking up, but sellers wanting another home should jump in and buy smart. Even if they don’t reap maximum dollar on their current home, they stand to gain in a purchase. Jones’ blogpost, “Postponing a Home Purchase Waiting for Home Values to Decline Further May Price You Out of the Market” features an easy-to-follow table outlining the relationship between interest rates and buying power.
If you’re a buyer wanting to take advantage of the Home Buyer Tax Credit, it’s not too late. 8 Tips to Take Advantage of the Home Buyer Tax Credit Before Time Runs Out offers some smart guidelines for how to rapid-focus your efforts to put the right home under contract.
Since we tour dozens of homes each month, we’ve put together a short list of best buys in Santa Fe: homes that we think offer excellent value for the price. This week’s pics include a gem in Las Campanas for less than $500K, a clean contemporary pueblo with views priced just under $295K, and a steal-of-a-deal custom home in the Hills and Villas at Bishop’s Lodge, minutes from The Plaza and downtown Santa Fe.
If you’re looking in a particular price point or neighborhood, challenge us to find you a winner.
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Top Seven Reasons Banks are Denying Home Loan Requests clarifies what to expect in the current lending climate, and introduces a little known alternative for securing loans: Private Lending.
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