The Real Cost of Relocating

There's good reason that relocating ranks alongside divorce as one of life's most stressful events: It's expensive. Even if you're moving for a higher-paying position, your spouse may have to quit a job and look for a new one, which could pummel your household income.

You might be forced to sell into a frighteningly declining real estate market.  With mortgage rates on the rise, monthly payments for your new place are likely to be higher.  Then there are all the expenses of settling in, from buying furniture to putting in an updated kitchen.

It's more important than ever to run all the numbers before you agree to move to a new city.  If you'd be selling in a weak real estate market, your new salary had better be pretty darn sweet - or your new employer needs to be willing to help you out.

Remember that relocating is sort of like buying a plane ticket to Paris:  The price varies depending on when you go.  May through September is peak season, so if you can depart earlier or later, many movers will charge you 5 percent to 10 percent less.  The same is true if you're willing to move in the middle of the month rather than at the beginning or end, when most moves are scheduled.

There is a long list of things you need to consider before relocating to a new city, and we'd be happy to furnish you with a thorough list of things you need to think about before relocating.  Just drop us a line, we'll be glad to assist you.

Another Rate Cut?  

Following the Federal Reserve's aggressive interest rate cut on 9/18, there is wide disagreement among economists about whether the Fed is done, or if the recent move was just a start.

Investors in a market in which participants bet on future Fed moves are expecting at least one more rate cut by the end of the year, perhaps as early as the end of the next meeting on Halloween.

Some say "..more rate cuts are inevitable…" while others say, "..that's it for this year.."

We'd love to hear what you think?  Do you think the Fed will try to further bolster the economy by lowering rates again this year, or do you think they'll sit tight for now?  Leave us your comment or thought below by clicking on the "Comments" link below.

Columbia Real Estate - All is Not Gloom and Doom

With so much negative publicity and coverage on the current housing market, most buyers and sellers would think that the entire real estate sector is falling apart.  This is NOT the case, and a number of great opportunities exist for qualified home buyers right now.

Most home buyers did NOT get sub-prime loans, and most areas are not flooded with foreclosures.  In fact, in many areas, you'd be hard-pressed to even find ONE foreclosure.

Before everyone hits the panic button, let's examine the facts:

• Sellers have become concerned, even scared, by the drastic change in the market.  If you wait to buy, those feelings may subside since people do adjust to change.  Some sellers may eventually take a stronger stand after the dust settles as they realize their local market was not affected.  This is a real possibility in some of the most popular locations across the nation.
• Sellers are now WILLING, even offering, to make serious efforts to please an interested buyer.  Requests for re-painting, offering perks such as personal property (furniture, plasma TV’s, stereo systems, potted plants), even gym and country club memberships, could and should all be considered to make the deal.
• Loans are absolutely still available for those who can afford to purchase, so if that is you, there are still great rates as compared to historical standards.
• National Home Builders buy materials in large quantities and, often times, can and will pass along those savings to consumers if asked.  The addition of a pool, game room, etc. would typically cost a buyer considerably MORE time, money and up-front costs but with the savings afforded by the National Home Builders, this investment is certainly worth taking advantage of.

This is not fluff, but if you're in the market to buy a home, there could be no better time than now to do it!

If you're considering selling your home, get the facts on the market before you put your home up for sale.  All is not what it appears to be in the press.

We'd love to hear your feedback and comments about the state of the real estate market right now.  Chime in by clicking the "comment" link below.

Housing Starts at 12-Year Low

Housing starts and permits for new homes fell to their lowest level in 12 years in August, as the problems in the mortgage and real estate markets caused builders to slam the brakes on new construction.  Permits, which are taken as a sign of builders' confidence in the market, fell to an annual rate of 1.31 million from 1.39 million in July.  Economists had been looking for that number to fall to a 1.34 million rate.

The pace of building for single family homes fell even more sharply, falling 7 percent to an annual rate of only 988,000, a 14-year low.  Permits for single-family homes fell 8 percent to 926,000.

The downturn in housing and construction and turmoil in the credit markets were two of the reasons cited by the Federal Reserve when it cut its targeted interest rate for the first time in four years on September 18th.  The slump in housing and home building has been a drag on the U.S. economy for more than a year, and there are growing fears the building slump could help tip the nation into a recession later this year.

What do you think?  Are we on the brink of a recession?  Are we already in one?  Was the Fed's move to lower interest rates too little too late?  We'd love to hear your opinion.  Just click the comment link below and tell us what you think.

Interest Rate Drop May Mean Little to Homebuyers

Home buyers (and home sellers as well) may be disappointed that the Federal Reserve's interest rate cut won't translate into lower monthly mortgage payments and a revival of the housing market.

The housing industry, now in the second year of its worst recession since 1991, erased 0.6 percent from gross domestic product in the second quarter.  Home prices are set to fall on a year-over-year basis for the first time since the Great Depression of the 1930s.

The Sept. 18th decision by the Federal Open Market Committee to reduce its benchmark interest rate to 4.75 percent from 5.25 percent doesn't mean mortgages will follow.

The Fed lowered its target for federal funds 13 times from Jan. 3, 2001, to June 25, 2003. After each cut, mortgage costs fell eight times and rose five times.

Many analysts are saying, "Lock in a rate now… long term bond yields will put a floor under how much further mortgage payments can and will go down."

What do you think?  Will the Fed's decision to lower the rate 50 basis points really make any difference in the struggling housing market?  We'd love to hear your opinion.  Just click the "Comment" link below and tell us what you think.