Blogs → Jason's Blog → It’s Not the Market You May Think It Is

Posted Sep 04, 2008 4:32 pm (3 years ago)

Subscribe to RSS feed

A lot of complicated and often frightening reports on what the media is calling “The Housing Crisis” have a lot of people nervous about buying or selling homes. Unfortunately, many of these reports are over-generalized. The media does not measure interest in a given property, or how many offers a real estate agent has received on a given property, which works to skew reports toward the negative. While many areas in the U.S. have had traditionally over-inflated housing prices, and over-inflated new housing developments, many areas like ours here in the Gilbert, Arizona real estate area are holding steady.

Can I Still Obtain a Mortgage?

It’s true that many home buyers are particularly wary right now. Many people are nervous about getting taken in by predatory lenders because news media has covered the mortgage crisis rather heavily. The amount of money that more legitimate banks are willing to loan for anything, mortgages included, has declined. Many buyers worry about obtaining a mortgage with what they think is a trustworthy bank, because they are concerned that their mortgage may be sold to a less reputable company, or that the bank itself may go out of business. As the number of Arizona foreclosures has risen, so has buyer frustration.

Use Caution When Choosing a Lender

While buyers should always be wary of predatory lenders, the recent decline in predatory lending has made borrowing money for a first mortgage quite a bit safer and even easier. As new buyers work with sturdier lenders to obtain mortgages, the number of Arizona foreclosures will continue to decline. The lesson to be learned here is this: the current interest rates for first mortgages are amazingly low, making home ownership more affordable than ever. As the market flushes out bad lenders, borrowing money for a mortgage is increasingly safe. The market isn’t as bad as it’s been made out to be, particularly in the Gilbert, Arizona real estate region. It’s a great time to buy, whether this is your first home or you’re moving up. An unspoken bonus to the negative media coverage is that buyers and sellers are working together and communicating more now than ever, making this a great time for home buying and selling.