By Rich Levin

Lies and Dangerous Lies

“As soon as the economy and housing market improve, mortgage rates will go up.”  That is a sensible and common belief among economists and experts in finance.  “Mortgage interest rates won’t go up until 2014.”  That is what the government economists are saying.

Well, you, the real Buyers looking for houses are smarter than that. You know that rates under 4% are tremendous. I know you know that because you are coming into the market in huge numbers in nearly every market across the United States.

They Are Reaching in Your Pocket Over and Over.

It is possible that specifically the interest rates on mortgage loans will stay low for quite a while but Federal fees on those loans have just gone up and that trend is likely to continue. Instead of the banks making the additional income on higher interest rates the government is collecting that income with increased taxes, mortgage insurance and fees.

Either way, the result will be that the cost of buying a home with a mortgage is likely to increase steadily. So, this spring market is unique moment; when interest rates are low. Prices are soft at the same time. And fees are as low as they will be for quite a while.

There is a Problem.

Real Estate prices are driven by supply and demand. In some markets around the country there will be an influx of foreclosure homes that will depress prices further.  For Buyers this is an opportunity not a problem. Sellers in those areas will be wise to put their house on the market sooner than later.

The problem for Buyers will occur at the peak of the spring market. In most markets around the country, there will be a few weeks or a month this spring when the greatest flurry of Buyers will be buying. For that period demand will exceed supply. You will know it is happening when every house you look at sells quickly and most have multiple offers on them. During that period prices will peak and Buyers will be forced to pay a premium.

Most years those higher prices sustain and values rise. It is likely that this year, like the last two years, prices will slide back to pre-peak levels by summer. So, Buyers would be wise to buy sooner than later as well.

How do you know this? I am in a unique position. Real Estate Agents from all over the country send me their sales and activity numbers, literally every day. I know how much they are selling, where their Clients are coming from, what’s hot, what’s not and how it all compares to the past three years. We, my Real Estate Agent Coaching Clients and I, see trends weeks and months before they are reported. We see them in real time as they are happening “on the street.”

My Clients took advantage of the foreclosure bust by developing relationships with banks nearly a year before it became obvious that there was a serious problem. The Agents I coach informed their Clients, the Buyers and Sellers in their markets of trends that make them or save them money.

This is the market people will look back on and say, “I wish I had bought then.”

Rich Levin is a National Real Estate Expert who has coached hundreds of Agents and Brokers to extraordinary success. His insights and talent are proven over the last two decades. Rich conducts a 15 minute coaching webinar every week day morning so you can see and hear him in action. Register at www.FreeCoachingWebinars.com.  You can contact him at 585-244-2700 or Rich@RichLevin.com.