Lower Home Prices

Is there nothing good about lower home prices?

While it may not feel good if you are a homeowner and your home may be worth less today than it was one year ago, there are some positive aspects to this ‘adjusting’ market.

Homes may become more affordable for home buyers, particularly in the lower price segments.  The mortgage for yesterday’s $600,000 starter home becomes much more reasonable if prices move down — especially if interest rates decrease as well in the coming months.

2. If you are moving ‘up' ,  even if your current home loses $50,000 in perceived value, the home you are buying up to will move in a comparable manner down. In effect, you lose nothing and gain everything.

3. if you are happy where you are, and have a mortgage payment you can live with, then it won’t make a difference whether home prices stay stable or drop.  History tells us that home prices will once again rise, typically in concert with personal income and inflation, and you will be fine.

4.  Hopefully, banks and lending institutions will have learned ‘their collective lesson ‘from the sub-prime lending debacle,  and we will not experience wanton lending practices again

which fueled the fire of unrealistic housing appreciation.

Whether you are looking to buy or sell a home in North Orange County , call the real estate agent with a track record for success.