Home Buyer Beware

Or more accurately, be aware, that there is a tremendous amount of hype in the mortgage and real estate markets right now.

Rising interest rates, bubble-bursting, rent going through the roof.

The real truth is when we lump everyone in every circumstance into something that's tied to a certain geo-or- demographic, it's just not going to be true for every circumstance.

Has the housing market changed? YES. It definitely has changed, and there are some areas of the country who are experiencing that change more than others. Here in the Puget Sound area and probably throughout Washington state, our economy (lead by continued net job growth) is still very healthy and as long as there are additional people moving into the state, we have a good level of buffer from the challenges that face other parts of the country.

Have interest rates gone up? YES, by 1/2 of a percent in some cases, and the loan programs that support those rates have also changed dramatically. Much of this is a result of the recent changes in the subprime mortgage market and increased foreclosure rate, and that's spilled over into other areas as well. But there are still a LOT of loan programs available with historically low rates and now is an incredibly great time to buy.

Consider this:
There has been much talk of dramatically increasing rent in the greater Seattle area (like the article featured recently in the Seattle Times). If this is happening to you, the amount you are paying in rent may be pretty close to a home loan payment. And somebody PLEASE get me started on the benefits of owning vs. renting! Please!

This could be the catalyst to push you into making the leap into home ownership. I'm certainly willing to help you make the transition. And with almost a 10-month supply of homes currently for sale, well, let's just say there are lot to choose from.

If you would like to "buy-up" into a larger/more expensive/etc. home but are concerned about selling your starter or second home for lower value because of the "cooling" market, why not consider buying your next home and keeping the existing home as a rental? Sounds like you could get pretty good rent right about now, and it's a great way to double your equity-building over the long-term.

The first step is the phone call to me so we can get to the bottom line and you can be prepared with enough information to make the best decision for your financial future. Operator is standing by!