Will Housing Market Survive Until Spring 2009?
September 21, 2008
Fannie Mae and Freddie Mac, backers of 40% of all mortgage loans, have been given new life with the take over by the Federal government. AIG insurance, one of the larges insurers in the nation, has received government backing to assure the financial markets that failure will not happen. Bond markets have seen a strong resurgance, mortgage rates fell and rose and fell, but remained a very good deal for homeowners. Gas shortages in the Southern states due to hurricane Ike have all but shut down excess driving. Housing prices have fallen around 5% in the Middle Tennessee market as houses remain on the market for longer periods of time. Will the homeowners who need to sell now, bail out with low prices, giving up their equity position? Will homeowners who don’t have to move wait out the market and re-enter in the Spring? Will rates remain low, increase to the 8-9% range, or fall to 5%? Can loans be obtained with marginal credit?
I was selling real estate when mortgage interest rates hit 19% in the late seventies. In the early seventies, gas was short and long lines were common. We were asked to buy gas only on days that corresponded with the first letter of our last name. We survived and the market has seen many healthy days. We will survive this downturn. We will come out on the other side of uncertainty with healthier markets. Buy now, or wait? Sell now or wait? It all depends on your situation. Let us help you determine if the now is the time is right for you. We are your real estate professionals at Priority Partners Realty. Your comments are welcome.