Getting the most out of a bad economy

Recent trends show the real estate market from 2009 to 2010 have decreased in sales.  However several areas have seen increases in sales and prices were overall throughout the area.  So, what about 2011?  Will the trend continue or will we see something that could change everything.

First - interest rates.  Interest rates have remained low for the last couple years, but lenders have made it difficult to get to the money.  What will change?  Interest rates will start going up over the next year with speculations seeing rates up .5 or a full point.  This will shock many people into buying, but their buying power will be diminished.  Lenders have to plan on bring back the zero down model, so if you have the down payment and have thought about buying a home…I would not delay.

Second - home prices.  Since 2007 we have seen the home prices throughout the area stay level or drop as much as 10%.  With new construction down and pre existing homes not in abundance like 2005-06, prices will increase over the next year or two.

Third - Sellers.  I believe and this is my opinion, but the market will turn over the next year it will become a sellers market.  Interest rates next year could be in the 6% range and inventory will be low.  The Dallas-Fort Worth area has been in the news over the past year for an abundance of jobs, best places to live, and all the up coming events such as the Super Bowl.  This will cause a panic in the area and buyers will be competing with each other for homes that hit the market.

So, back to the heading of this blog.  How do you get the most out of a bad economy?  You must realize we are at a turning point in the Frisco homes for sale market.  If you can hold off to sell your home until next year, great you will make some money.  However, if you want to sell your home (check out our Flat Fee listing service) this year, you will benefit from the low interest rates and great home prices.  You might not get top dollar from your home like next year or year after, but with the off set of potentially high interest rates and a great invetory of homes this is the year to go after that next home.

Need to sell your home fast give VIP Realty DFW a call at 469-644-3402.