Tucson Real Estate Blog

Interest rate update…

Looks like good news as the reported data is not as bad as it looked during this past week.  The Fed will probably hold again when they meet tomorrow.  If gas prices continue to drop it could stimulate the economy but what will be the result?  Possibly more inflation and the Fed has to act at their next meeting.  I wish I had a crystal ball.  Interest rates are just above 6 1/2% today and may go down slightly.

Interest rates on the rise?

Today rates are very close to 6 1/2% for a 30 year conventional loan.  With all the information I am reading expect the Fed to attack inflation again.  They meet this Wednesday and I am betting on another increase in the Federal Funds rate.  This will affect your credit card rates, home equity loans, and surely push home loans up again.  I see us back around 6 3/4% in the next few weeks.  A suggestion to you is get your loan locked in if you are in the mortgage process and have an accepted contract.

Pricing…

I now have had two instances recently that I have refused to take a listing.  The sellers wanted to price above what I suggested and I could prove by the comparable sales for the subdivisions or close area.  In the last instance I would have been agent number three with a price above what I felt it should be listed for.  Granted there were some extenuating circumstances for each of the prior two releases (mutually terminating the listing agreement), but 62 days on the market with no contract and very few showings, in addition to the comparable sales, tells me it is overpriced.  The Seller relied on neighbors and “business people” to cause the Seller to not take my advice.  Now I ask you, who is more knowledgeable about price, your neighbors, business associates/friends, or an attuned Real Estate Broker?

If you are overpricing, please stop as you will waste valuable time and probably get less as the days & weeks pass and prices drop.  Be smart and list properly.  You can say NO to an offer but at least you got one.  Make sure the home shows well and keep it that way until it is sold.  My guess is about six months of slower sales and settling of prices.  Does this mean very low prices?  NO, I don’t think so, but expect a few thousand dollars worth of softening from a PROPERLY priced home.

Email me with your questions and thoughts.