The real estate market is seeing rays of hope, according to Donna Rizato a senior writer with Money Magazine. In a recent interview on the Today show, Donna shared her insight on recent developments with the housing market, “We have finally hit a bottom in the market for real estate. 98% of markets are expecting an increase in home prices this year.”
Donna went on to predict that home prices are expected to increase a modest 2 percent in 2012 and around 3 percent in 2013. Clearly the days of property values jumping in increments of 10 percent and 20 percent are behind us.
In a recent blog post (Mortgage Rates Down to all Time Low) we shared that interest rates for 30-year mortgages are at an all-time low. According to Donna, “Rates are expected to stay at this level and then move up.” Her advice is to keep an eye on the economy, since the two are tied together – as the economy improves, interest rates tick up.
Here are some terrific tips from the interview:
1. Check Credit Score – To qualify for the lowest rate, you will need a credit score of 760 or higher.
2. Small Is The New Black – Smaller, more manageable homes are in demand, especially as baby boomers begin retiring and downsizing.
3. Get A Reality Check – 75 percent of homeowners think their home is worth more than 10 percent of its actual value. Since a well priced home will sell quickly, work with an experienced Realtor to get a customized market snapshot.
4. Put Skin In The Game – In order to refinance, you should have at least 20 percent of equity in your home. If you don’t, you might consider cash-in financing. That’s where you bring money to the table at closing.
5. Look For Life Preserver – President Obama recently unveiled a plan to help underwater homeowners. In the plan, homeowners would be able to refinance into loans guaranteed by the Federal Housing Administration, even if their home debt is more then their properties are worth.
The Fort Lauderdale real estate market has seen signs of improvement since the end of 2011. The inventory of homes for sale has been decreasing, thus driving up prices. Don’t kick yourself thinking you may have missed a prime opportunity to buy a wonderful Fort Lauderdale home. There are still many beautiful luxury homes for sale that are priced well.
