Buyer Services
Use these links for information regarding the process of buying homes or other real estate in this market area.
Market Update:
Full Report
Third Quarter - 2011
This
is a full PDF report on market conditions relative to market time, unit sales
and pricing trends. It will be updated on a quarterly basis.Financial and Mortgage News:
Connecticut Home Mortgage
This
site will provide many of the tools you need to monitor the mortgage market and
search for a loan.More Info:
First Heading or Title
This
will be updated as we find material to place here.
Buyer Services
We would first like to discuss whether or not this is the right time to purchase real estate. The market as a whole has slowed, as we all know. Should this keep you on the sidelines? Are you waiting for the "bottom" to appear? We keep hearing in the media that it is a buyers' market and that it is the right time to buy. Prices are low, and interest rates are at all time lows. Affordability is better than at any time in generations. All economists predict that interest rates will soon begin to rise. Don't be fooled by the Fed's claim that it will keep rates low for the next two years. That is speaking of the Federal Funds Rate. Mortgage rates are more tied to the 20 year bond yield. Rates will rise. Affordability will grow tighter. Yet, many of you are still waiting. We want to share the truth with you. Complete the following exercise. Run a payment based upon $300,000 financed amount for 30 years at a rate of 4.0%. Excluding property taxes and homeowners insurance, the monthly payment is $1.432.24. Now, lets make a negative assumption that prices will decrease another 10% in a year. Let's say that you wait that year to buy at a lower price. We must also assume an increase in interest rates. For this example, we will say rates will increase only 1% in the next year. Input a loan amount of $270,000 (a 10% decrease) and a rate of 5.0%. The payment will be $1,449.41. By waiting a year to purchase, your monthly payment will actually increase by $17.17 per month. Do you still think that you should wait? Perhaps what is holding you back is a lack of down payment money. If this is the case, take your time using the calculators here for a look at ways to purchase with less than 20% down. The basic point is that you should not wait to try to catch the bottom of the market. You should take advantage of the lowest interest rates in your lifetime. This will have a more beneficial impact on your pocketbook.
Experienced Buyers
We understand that not all of you have the same knowledge needs as others. If you have purchased homes before, you are probably very aware of the process. If this is the case, you will only need to know what is unique to this marketplace. Click here for an overview of our market practices.Inexperienced Buyers
If you are new to real estate, or are just not sure what you did the last time you purchased a property, you may need more in depth information as a learning or reinforcement tool. Click here for a detailed explanation of the process.
