Are we going to hell in a handbasket?!

Posted by Maura on September 30th, 2008 — Posted in real estate

I have been very worried listening to the news lately. I know that is what the news is supposed to do, but this time it is working. Yesterday, the stock market plunged bigger than it has since the terrorist attacks hit down the street from Wall Street. Banks are folding, 401k’s are tanking, and people are calling their grandparents (who are still alive) and asking if the Great Depression felt like this.

Yesterday, Congress failed to pass the government bailout proposal, and things are continuing to implode. in my own little town of Truckee, I am seeing real estate offices close, buyers putting purchasing decisions on hold while they recalculate their savings, and people (including yours truly) getting very nervous.

A colleague uttered an expression yesterday that I have heard in various forms, and I like to think of it in times like these. It seems to be the only ray of hope when s— hits the fan…..   “When people are buying, be scared. When people are scared, be buying.”

This will be one of those times in history when we look back and say “I could’ve bought stocks for X or that house was Y back in the big crash of 2008….why didnt I buy?!!!” Keep this in mind, one thing about unsure times like we are experiencing today is that it creates really really good opportunities if you are brave enough to buy.

This article from the Associated Press talks about the failure to pass the government bailout yesterday.

Happy buying!

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Fannie Mae Freddie Mac goverment takeover creates a full-point drop in interest rates. Buyers, get on it.

Posted by Maura on September 9th, 2008 — Posted in real estate

I know. I am a realtor, so I am constantly having to sell real estate. Even in a down market like the one we are experiencing, I still find reasons that the time is great right now. “This house would have been $100,000 more 3 years ago”, or “interest rates are low coupled with a buyers market- the market hasn’t been this good since the depression!” And I do mean what I say, by the way. And yet, my buyers continue to look at more houses, pondering low ball offers that even in today’s market seem ridiculous.

Until a loan officer from a local loan company came to our office meeting at my new office, Pacific Crest Properties in Tahoe Donner yesterday explaining what happened with the government takeover of the two loan giants, Fannie Mae and Freddie Mac and what it means for buyers needing a loan to purchase in today’s market. Until the dust settles and the controversy stirs up, the benefit to buyers are interest rates that roll back to 2005- low 5% which is about a full point lower than they were a week ago. Seriously. That $600,000 house just got a lot cheaper to buy. This article was in the San Jose MercuryNews. If you are a buyer, PLEASE get preapproved and make it happen. It is more affordable today than it was the other day to buy a house.

Happy buying!

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