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New Listing

by The Barringer Team
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2143 Golden Gate Dr
Price: $449,900 Beds: 4 Baths: 2 ½ Baths: 1 Sq Ft: 2243
Luxurious house on the west side of town with lots of upgrades and a pool. Three fireplaces, crown molding, master suite, surround sound, three car tandem garage, beautifully landscaped private backyard on a large corner lot. This house is clean and...

Interest Rates

by The Barringer Team

The Interest Rate Effect

So interest rate went up…by about a half a point. A pretty decent increase. The question has been posed this week…will this have an effect on slowing the market down? I think that’s a good question and based on my own activity this week I think it has. Of course I also think that will last another couple of weeks and then it’ll be full steam ahead.

Why do I think that? Because rents aren’t going down and if you think this will mean prices will fall 24% in the next few months…get over it. They won’t. A few people I spoke to think rates could go up over 5% by the end of the year. If that becomes clear don’t you suspect folks will be more serious about buying before that happens? We’ve had a long period of low rates. I think this increase shocked some people but those same people will rediscover their motivation to  buy in the not too distant future. Simply because all those reasons they had to buy before are still there.

I do think this week will provide a very nice opportunity to get a bargain though…if you can really use the word bargain for this market. I think you may be able to not compete to compete with a lot less people. If I was a buyer I’d be writing soon…because folks got nervous and that nervousness won’t last long.

What To Look For When Buying Real Estate

by The Barringer Team

What To Look For When Buying Real Estate

The first thing that most of us think of is the adage... "location, location, location". While that is certainly very critical, there are many other things to consider when buying real estate. Here are some universal guidelines.

 

  • How long you intend to stay in a home. This is an important question to consider because moving is quite expensive. If you're in a temporary job and may soon be relocating to another city or even state, renting rather than owning might be a better option.

    While none of us entirely knows how our future will play out, understanding how long you expect to stay in your home allows you the chance to decide how large a home you want. If you're a young couple, a home that is able to grow with you might be appealing.

    Whether you're buying a home to live in or as a rental, the next series of tips can help in either circumstance. What makes a home more comfortable to its owners can also make it more attractive to renters.

     

  • Job market. It's always a good idea to check the U.S. Bureau of Labor Statistics to see how the employment is in an area that you are considering purchasing a home. Areas with lower unemployment, of course, are most attractive. The greater the demand for jobs in an area, the more likely home prices are to go up.

     

  • Check area vacancies. This may not seem that important if you're planning to live in the home but actually this is a good thing to know even if you don't rent your home. If there are lots of vacancies compared to surrounding areas, there could be a slowing in the market. If you're planning to rent the home, you'll want to make sure that you have enough savings to cover expenses any time when your home sits vacant. If the market is slowing, there could be a period of several months before you get a quality tenant in place. Being prepared will ease the stress.

     

  • Visit the local police. Crime in an area isn't always detectable right away from a few visits to your potential home. Do a little digging. Ask questions. Investigate the neighborhood. Some areas may look okay but may have a high crime rate. It's best to understand the neighborhood you might soon call home.

     

  • Natural disasters. Believe it or not, some people like a home so much that they disregard the natural disasters in the area. This isn't to say that buyers should say, "Well, I can't buy a home in California because they have occasional earthquakes." Rather, some buyers are willing to gamble big time. For instance, they are willing to buy homes that are located on unstable cliffs where the cliffs are eroding year after year. Insurance... if you can get it... will certainly be higher. Natural disaster-prone areas such as flood zones may require additional insurance and a strong stomach to endure the stress.

    Ultimately, what to look for when buying real estate is about considering the things that will matter not just in this moment but in the years to come. Having a good strong foundation beneath your home and a safe neighborhood are key components to creating a happy homeownership and good investment. 
     

What are Interest Rates doing?

by The Barringer Team

The question that I am getting from almost everyone is, "How long will mortgage rates remain at their current low levels?"  My answer is always the same.  "Nobody knows for sure!"  Here is some insight though into what may be ahead.  Right now the government is purchasing around $80 billion dollars per month in bonds.  This rate of purchase is what is needed for the continuation of the current low interest rates. My thought is that rates are going to be somewhat volatile until the Fed meets on June 19.  With unemployment rising slightly there may not be any reduction of the bond purchase rate by the Feds when they meet.  If the Feds decide to reduce the bond purchase rate, then rates will jump as a result.  Long term, my thoughts are that most of the fluctuation is going to be minor for the next quarter or two as long as the economy remains flat.  A surge in employment could be the trigger for reducing bond purchase and the creation of higher mortgage interest rates.  My suggestion as always is that you know what you have today and it may not be here tomorrow.  If you want to take advantage of the low interest rates then don't delay.  If you are thinking about a home purchase or a refinance the best advice I can give you is do it now!!

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The Barringer Team
Century 21 M&M and Associates
912 W 11th Street
Tracy CA 95376
209-833-7777
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