We all watch the news; and it always says how bad things are in the Real Estate business. The market is so bad. You cannot get a mortgage. Interest rates are high. Real Estate agents are leaving the business in droves. These are things we often hear; but is there any truth in any of this? Even my new personal trainer gave me a look last week when I told him I was a Real Estate agent! (I think he was worried I couldn't pay him!).
Here are the facts as I see them:
As I have always said: Real Estate is VERY LOCALIZED. What is true in one part of the State (country or city); is not what is going on someplace else. Many parts of Washington DC is still seeing a good number of sales. Not as many as years past; but everyone agrees the market was TOO HOT and simply had to slow down to some extent.
Yes you can get a mortgage! Do you need good credit? YES. Do you need some money for a down-payment? YES. The mortgages of the "HOT TIMES" were ridiculous and should never have been allowed or expected to return. To think getting a mortgage with terrible credit or no money-down was just plain silly. We are now back to more "Normal" (and sane) times. If you have decent credit and at least 3% down; FHA loans are readily available. If you have 5% down or more - there are even more loan programs available.
Interest Rates High? NOT AT ALL. My 1st home I had a mortgage at 8.5% and everyone was amazed at how LOW that was! That was 12 years ago. One agent in my office sold houses when Interest Rates were close to 20%. So if you say 6.5% is High - you have a very short memory! Rates did down to the 4-5% range; they were too low and I am confident that was a fluke. A once-in-a-lifetime thing. I don't ever expect to see 5% again. 6% - 7% - These are good rates.
Realtors leaving the business? Many are yes. As in ANY industry, when times are (too good), you are bound to have an influx of new folks in the business looking for easy money. As soon as the "easy money" goes - so do those who got started for the easy money.
Those of us agents who are looking to work hard and earn a living - are doing just that. Buyers are getting great deals. Sellers are still selling. Life, as we know it has not stopped!
I also want to thank my Blogging Pal, across the river, Brian Block and his post, for the Inspiration for this post.
Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area. Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA
