WILL LOWER RATES BRING BUYERS TO OUR AREA IN 2009
BY: Fred I. Leff
Specializing in Regent Square, Swissvale, Edgewood, and Frick Park areas
The new Jumbo-conforming mortgages with higher loan limits that takes effect in 2009 should give real estate a boost if rates remain as low, or lower than they are now. The 2009 jumbo mortgages for 30-year fixed rate is currently quoted at 5.25 percent, and the Treasury is talking about buying down fixed rates to around 4.5 percent for home purchases, in order to reduce the huge inventory of unsold new and existing homes. This should give a rise to housing values, which is what lower interest rates tend to do. Our area has held prices fairly steady for the last 2 years e.g. 3 bedroom homes selling in the low to mid 200's depending on condition.
Pittsburgh overall has actually seen an almost 2% increase in home values in the past year. Pittsburgh never saw the 100% appreications in only a years time as did California and Florida, so we thankfully are't seeing the huge declines those markets are exhibiting. The name of the game in our area is slow, small increases and because of that our markets haven't seen the upsidedown equity positions of vast numbers of home owners across the country.
I believe that if the interest rates stay under 5.5% that we should have a good Spring and Summer Real Estate market. Keeping your home up to date and having the features that Buyers are looking for are just as important as pricing your home. Pick an Agent that knows the housing prices in your neighborhood and you should be ready to sell one of the largest investments of your life. Choose carefully.
Interested in selling your home or know of someone who might....contact Fred below!
Fred I. Leff
Prudential Preferred Realty