"If I only knew this house was being listed for sale before the other bidders came along, I could have bought it for $1,000's less!"
This is what is going through many heads these days, since the real estate market has recently taken a sharp turn and inventory is shrinking fast. See the many recent sale prices that are higher than the seller's asking prices, if you don't believe it.
The reason inventory is so low now is because everyone is trying to get their purchases in before the interest rates go higher, since rates already began to rise due news on the feds no longer putting money into the bond market. Yesterday we saw the rates creep into the 4%'s for the first time in a very long time!
Below is an example of why real estate is being bought up so fast now:
$1389.35 is the monthly mortgage payment on a 300k 30-year mortgage at 3.75% interest.
$1945.79 is the monthly mortgage payment on a 300k 30-year mortgage at 6.75% interest
The difference paid over the 30 years is: $556.44 x 360 months = $200,318.40
If you are home shopping, you should know about a free alert service that will send you an automated email if a home matching your exact search criteria hits the MLS. If you take a minute to fill out a simple form, where you can describe the home you are looking for (type, size, location, and any personal requirements) and when or if a home matching your description is listed on the MLS, you will be alerted automatically within 24 hours (most likely before the competition).
Link to form: http://tinyurl.com/pv9674e
Happy Home Hunting!
Jane Shebroe
