You probably don’t need me to tell you this, but just like Wall Street’s recent tumble, the real estate market has taken it’s own tumble. Fortunately for those of us living here in the Rock Hill, Fort Mill, or Charlotte areas, that tumble hasn’t been as painful for other areas of the country. Nevertheless, it has certainly made for an interesting ride the last year or so, and it looks to continue for some time.
As I’ve been saying though, this doesn’t mean it’s a bad time to get into the real estate game, either buying or selling your home, it just means you’ve got to be more savvy when it comes to how you handle your real estate transactions. Home prices in the York County area have continually appreciated the past year and while it will be interesting to see how that trend continues, I suspect we’ll still see a healthy pace when it comes to the buying and selling of real estate here.
Again however, it’s important to be knowledgeable of what’s going on in a particular market and here are 5 real estate trends to keep in mind as you contemplate buying or selling a home in the Rock Hill, Fort Mill, or Charlotte areas:
1. Homes in foreclosure have reached record numbers.
Thanks to the sub-prime lending market that’s got us into this current economic mess, there is a HUGE number of foreclosed properties. Unfortunately, this is a problem we haven’t dodged. I was looking at properties with a buyer the other day and was a bit suprised to see the number of foreclosed listings available in Charlotte. It was certainly more than what I’ve seen here in the Rock Hill or Fort Mill areas, so keep this in mind when considering your next home purchase.
2. Home prices are stable or falling.
In many areas around the country home prices are steadily falling. I just saw something the other day talking about real estate prices in Florida and how they’ve been cut at least in half, by 2/3’s in some areas.
Fortunately again, we haven’t seen anything near that here in this area. Yes, home prices are not soaring like they were just a few years ago, but for the most part, here in the Rock Hill, Fort Mill, Tega Cay areas home prices have remained pretty stable. Of course, don’t expect to see the huge appreciations seen previously, but if you price your home correctly and competitively there’s no reason to not expect a good sale price for your home.
3. Borrowers are having a tougher time getting loans.
This one is true anywhere you go. Again, what got us into this mess is the sub-prime mortgage market where people that weren’t really qualified to own a home were given every opportunity to do so. As a result, you had people that really couldn’t afford the home they were buying, quickly falling behind on their payments.
Where you could once get a loan with little money down or without having to document your income or employment, those days are past. At least for now. Nowadays you’ll need to bring some money to the table, have a strong credit rating, and be able to prove your income. Now, I’m sure we’ll see a day when some of these things might become a bit more lax, but it won’t be for a while.
4. Â Bad real estate agents are being weeded out.
I can attest to the fact that this one is definitely true. A few years ago if you were a real estate agent it was an easy game. People were buying and selling houses like crazy and as an agent, all you had to do was sit back and count the money. Okay, it wasn’t THAT easy, but it was significantly easier than it is now.
I haven’t been in the game very long and in fact, I got in right as things started going south. So for me, this is the only kind of market I know. As a result, I know how hard it is to sell a house and how much work it takes. I know how challenging it can be to market not only myself, but my clients properties as well and let me tell you, it’s not easy.
In my short time in the real estate game I’ve seen my fair share of agents leave the business and I’ve even seen my share of good agents turned off by real estate. I guess that’s just a result of the current market.
For you, that means you need to carefully evaluate the agent you do decide to work with. Find out what their take on the current marketplace is and if sounds even the least bit negative, consider getting another agent. If your agent doesn’t know how to harness the power of the internet, consider getting another real estate agent, because in today’s marketplace knowing how to utilize the internet to it’s fullest extent is critical.
5. Mortgage rates are STILL at record lows.
After the recent government bailout of Fannie Mae and Freddie Mac, rates for a 30 year fixed rate mortgage dropped from 6.35% down to 5.93%, the biggest drop in 28 years. No matter what you’re trying to buy, 6.35% is still very cheap money.
While I don’t personally remember, I do know that during the early 80’s mortgage rates were in the double digits. In most cases between 13-17%. Could you imagine paying TWICE the interest rate of what’s currently available?
So yes, while the markets are a bit topsy-turvey right now, we’re still enjoying some of the lowest housing rates EVER. This, coupled with the still strong housing market in the Rock Hill, Fort Mill, Tega Cay areas should be enough to lift your spirits slightly.
So as you’re contemplating buying or selling your home, remember, it’s not all bad news. In fact, now’s a great time to find some fantastic bargains if you’re willing to put in the time and effort to find them.
And when you’re ready to buy or sell that dream home of yours, if you’re not sure how to proceed, be sure to give me a call because I know how to be successful in this marketplace and I can help ensure you enjoy a successful real estate transaction!
