Wednesday, September 13, 2006
"No Bubble" Real Estate Trouble?
There, the big guns have said it today in a response to Congress asking the questions about whether or not the U.S. will suffer a housing bubble.
In fact, let me copy their own words as quoted in Inman News today:
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“Economists and a representative for the National Association of Realtors, in congressional testimony today, raised red flags about “exotic” mortgages and rising interest rates, energy prices and house prices, though they said they do not expect a doomsday scenario for the nation’s housing market.
“With rising mortgage rates, home buyers are becoming exhausted financially, which explains why sales have tumbled in high-priced regions of the country,” said Tom Stevens, president of the National Association of Realtors and vice president of real estate brokerage giant NRT Inc., in written testimony.
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There you have it. Finally, just what WE’VE been saying all along…because the media has hyped it up as if everything was going down all over the nation.
What's interesting to note is that they point out much of the trouble comes from the 'exotic' type mortgages. Now in terms of Cape Coral, Florida real estate - where property prices in some neighborhoods can run into the millions, many of the buyers here can typically afford their payments.
But a note of caution if you're about to buy in Cape Coral - based on the comments made above, and it's of my firm belief, if you can get a sensible fixed-rate mortage for your real estate and lock it in, then that's the way to go...even if you do plan on flipping the property in the next two years due to the appreciation and growth within Cape Coral.
Kudo’s to the industry players for acknolwedging the true facts and separating them from the real estate hype. Now, just what do you think the Feds will do next based on this expert real estate testimony?
Let us know your thoughts by replying to this blog right here.
In fact, let me copy their own words as quoted in Inman News today:
= = = = = = = = = = = = = = =
“Economists and a representative for the National Association of Realtors, in congressional testimony today, raised red flags about “exotic” mortgages and rising interest rates, energy prices and house prices, though they said they do not expect a doomsday scenario for the nation’s housing market.
“With rising mortgage rates, home buyers are becoming exhausted financially, which explains why sales have tumbled in high-priced regions of the country,” said Tom Stevens, president of the National Association of Realtors and vice president of real estate brokerage giant NRT Inc., in written testimony.
= = = = = = = = = = = = = = =
There you have it. Finally, just what WE’VE been saying all along…because the media has hyped it up as if everything was going down all over the nation.
What's interesting to note is that they point out much of the trouble comes from the 'exotic' type mortgages. Now in terms of Cape Coral, Florida real estate - where property prices in some neighborhoods can run into the millions, many of the buyers here can typically afford their payments.
But a note of caution if you're about to buy in Cape Coral - based on the comments made above, and it's of my firm belief, if you can get a sensible fixed-rate mortage for your real estate and lock it in, then that's the way to go...even if you do plan on flipping the property in the next two years due to the appreciation and growth within Cape Coral.
Kudo’s to the industry players for acknolwedging the true facts and separating them from the real estate hype. Now, just what do you think the Feds will do next based on this expert real estate testimony?
Let us know your thoughts by replying to this blog right here.
