Archive for Real Estate News

All Real Estate is LOCAL — Pleasantly Surprising Findings

March 5, 2008 at 9:27 am · Filed under Real Estate News ·Tagged , , ,

Dear Friends, 

After hours and hours painstakingly digging through the vast housing data, now I confidently and proudly present the following report to you—-It may surprise you that our local Real Estate market is healthier than you hear and read in the media, which usually makes reports without an in-depth understanding of the topics. 

Maybe you still have doubts on your mind about the economy and housing market, and you might ask and wonder:“Why would some “fools” want to sell and buy in this changing market?” 

Here are my analyses and compliment to these actually smart homeowners and house shoppers: 

  • Psychologically: They demonstrate they can WIN in any weather and any market condition.
  • Financially: It will even out—–the “loss” on the sale will be more than “gain” back on purchasing.
  • Physically:  This price decline actually represents an excellent opportunity to consider trading up to the home you have been dreaming of.
  • Tax Benefits: The tax write-off on the new loan’s interest is much greater than that of the old loan. 

What does that mean to you? ——-Take Action Now——

  • while the prices and interest rates both are low to ensure your low monthly payment
  • while sellers are willing to provide buyers with thousands in closing costs
  • while there are plenty of great looking houses with new flooring, new kitchens and baths?

Or  wait  until the prices start up, the seller subsidy is gone, and the monthly payment inflates because of higher interest rates? 

Ask yourself:  where do I want to be in Real Estate market in 2008? Acting or waiting?  

 

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The Economic Reasons to Buy a Home

April 23, 2007 at 9:46 am · Filed under Real Estate News

Many factors play a role in the choice of property a home shopper ultimately buys. The decision to purchase a home is both an emotional, and a practical decision. A buyer’s reasons may be based in part, for example, on the physical appearance of the property and the way it looks, or it’s location, and the house’s proximity to work or nearby schools.

All of these factors are valid reasons that play a part in buying a home. Yet, the practical side of buying a home as an investment is certainly just as important as the other considerations that a buyer must make.

Let’s take a look at the economic factors of homeownership, and why buying a house is a good investment decision. Here is my list of financial reasons to buy a home.

1. Real estate is a uniquely powerful investment medium. With real estate you have the ability to use leverage to own, and control a very expensive asset, with a relatively small initial capital outlay. This financial investment, your home, is also a necessity of life, and provides shelter and tangible benefits for you, and your family. It frequently increases in value over time, through appreciation. Equity in your home can be built up while you make monthly payments, and thereby pay down the mortgage principle, a form of “forced savings”.

2. Owning real estate can have tax benefits, since homeowners are allowed to deduct real estate taxes, and interest paid on their mortgages. (Refer to your tax consultant to see if the deductions available can apply to your particular situation).

3. Real estate can also serve as a hedge against inflation. Apartment unit rents will certainly increase during times of inflation, while a fixed rate mortgage, and some other types of mortgages, (including long-term ARMs), will not suffer the same payment increases.

4. Owning real estate can often be less expensive, and
a far better investment than renting. See Rent versus Owning Calculator

5. Real estate can out-perform other investments, namely stocks, over the short term. Over the very long-term (20-50 years) stocks can consistently out-perform real estate. The advantage of real estate as an investment over stocks appears to be in certain markets and over mid-length time frames (1-15 years). See Forbes Magazine analysis.

These are the primary financial factors that make buying real estate a great opportunity in almost every market and practically every person’s financial situation.

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Read this article, 5 Lousy Excuses for Not Buying a Home (from SmartMoney) and learn how not to trip yourself up when considering the purchase of a home.
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Contributed by by Christopher Sartorius, Carteret Mortgage

Please don’t hesitate to contact me with any questions you may have about purchasing a home or refinancing your existing property.

703-591-3918
chris.sartorius@carteretmortgage.com

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Northern Virginia 2007 Market Conditions

April 13, 2007 at 10:28 am · Filed under Real Estate News

 Contributed by Christopher Sartorius, Carteret Mortgage

Interest rates are projected to vary within an expected narrow range during 2007. They are unlikely to climb above 7% or decline below 6% for the year, as a regional average rate.

Regional job growth is expected to be strong, with approximately 56,500 new jobs created during 2007, making the area among the strongest local economies in the country. For more information about job growth and the differences between our local economy and the rest of the country, see the Center for Regional Analysis’ report, at: 2007 Forecast (PDF format)

With continued job growth, home sales for the region should increase over 2006 figures, for resale homes, during the course of 2007.

Locally, house prices on average should rise somewhere between 2% - 4% during 2007, based on market trends and projections derived from 2006 results.

While interest rates remain at historically low levels, along with a strong regional economy, it is possible that a seasonal resurgence in the local Northern Virginia housing market may take place during the Spring months.

Buyers at this time have the better negotiating position, as houses remain on the market for longer (more traditional) time periods before selling.

The good news for home sellers is that the Washington metro region is better off than most other regional markets in the United States.

Visit the Center for Regional Analysis Web Site for more information.

Contact Chris at 571-265-3918 or chris.sartorius@carteretmortgage.com

www.MtgLoanPlanner.com

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