11 Comments so far

1. John N on January 30, 2008 7:45 pm

   Have to say no … wait until 2009 see what happens with the economy .. buy now and you might be sorry .. just my opinion

   unless you get the home in deep discount

2. Jay Skinner on January 31, 2008 8:47 pm

   I think that the interest rate reduction is a very positive move for the housing and mortgage industry. The interest rate is the lowest since 2005. People with adjustable rates and home equity lines will pay less, having more money to buy investment in properties, a new home or refinance the existing mortgage.

3. Tom Elder on January 31, 2008 10:06 pm

   I think that the current low interest rates will stimulate the early spring homebuying season, as we are already starting to see incresased activity in our area. I do, however, think that the recent bad taste in the mouth of the current housing/mortgage market will leave the powers to be in a very cautious position. They will be over reactive to avoid a repeat performance in the housing market. Things will probably tighten a bit more in the late spring and into early summer and stabilize through the remainder of 2008.
   I am still seeing the equity in homes normalize to reasonable values and feel that there is a little more tightening to go, however, the market is ripe with deals and 2008 is a great time to buy real estate “on sale”. Speculation says that 2009 proves to be the year for true recovery in the housing market. I guess we will see.

4. Amanda Auger on February 2, 2008 12:24 am

   I feel that depends on your local market. National trend compared to your local market statistics can vary greatly, and here in Hampton Roads were still holding strong. Although it has slowed down, last year was the 4th best year we’ve had in real estate in the whole time we have been in business. I think the interest rates being reduced will stimulate positive results and I am already working with two new clients since the beginning of the year.

5. Brian Brady on February 3, 2008 10:41 am

   I’m going to disagree with Spencer based on one word; affordability.

   I’ll use some Ztasts to back it up:
   http://www.zillowblog.com/zindex-super-bowl/2008/01/

   Look athe the median values and median income for both Foxboro and East Rutherford; unless median incomes rise, both are signaling median prices of about $250-275K

6. Brian Brady on February 3, 2008 10:41 am

   spelling mistake: Ztats

7. Jacki Booth on February 3, 2008 1:21 pm

   Our market slowed last year, however, things have picked back up in Galveston County, Texas. There are a lot of really good buys out there right now and the interest rates will stimulate this even more. We have an abundance of condominiums on the market at some great prices. I am looking forward to seeing how this all plays out.

8. Big Bear Real Estate - Tyler Wood on February 3, 2008 3:02 pm

   I have already noticed an uptick in activity the first month of the year. While all real estate is local, I have been hearing this from other agents around the state as well.

   I have a client in escrow now that will be saving about $400 a month alone just from the drop in interest rates. Couple that with the fact that he is getting a good price (about 20% below the previous sale from 18 months ago) and the potential for the conforming loan limits to be increased, the future looks good in my opinion.

9. Larry Lang on February 3, 2008 9:06 pm

   As interest rates are dropping, I am seeing more stepping into the market at the lower price end. It is now coming to a point where they can afford to buy a home for a few hundred dollars more then renting. They also get the tax advantages. If the property tax cut hold up, there will be more buyers, causing the supply to shrink. Hopefully this will cause an increase in sales.
   South Florida Rentals And Home sales

10. Santa Barbara Real Estate Voice on February 4, 2008 10:57 am

    David,

    Thanks for the post. There is a lot of talk amongst agents here in Santa Barbara and Montecito about what these rates along with the increased govt. backed loan amounts will do for the market. Many of my clients have for sure brought this up in conversation as well.

    Just in the last few weeks there has been a definite increase in activity and pending sales in our market. This does not predict the future, but nonetheless it is hard to say it is coincidental.

    http://www.santabarbararealestatevoice.com

11. Jay Skinner on February 9, 2008 4:22 pm

    The interest rate cut with help the housing market bit I think that the Federal reserve bank needs to drop the interest rates, maybe back to 1%. Once the economy stabilized, the federal reserve bank need to increase the rates gradually (not like they did before, a quarter point every time they meet).