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Interest Rates

by Brian Maecker

         What is a good rate? Is 4.25% high? I am frankly pretty disgusted with the papers and news blaming Donald Trump for the ½ point surge in rates since the elections. Let’s get this straight real quick – it’s not his doing!!! The Federal Reserve has been threatening to raise rates for over a year. The economy as a whole has not been doing well enough to raise them for fears of stalling the market. Rates have been kept low to stimulate the economy. Anyone who has been following the housing market can agree, the market is adequately stimulated. I say it’s overdue for rates to go up. Home prices have shot up as a result of low rates. This shoot up in prices has made the housing market to fully recover in almost all areas of the U.S. It has not worked here locally for homes over $500,000.00, but it has worked too well for homes under $300,000. Rates had to go up to stall over inflation. It means the Fed is looking positive for further economic growth. While it may slow the housing market a bit, it needs to happen to prevent over inflation.

          4.25 – 5% which forecasters predict, where we will end up this year is still incredibly low. In 2000 we were happy to see rates go below 10%. In 1980’s we were happy to get 14%. The papers and news need to know the facts and quit playing the blame game! The election is over; Let’s grow up and move on! 

Brian 

Experience Counts!

by Brian Maecker

           Before you hire your neighbor, your sister, your friend to help you sell or buy a home Check Their Experience!

           We just closed a rather high-end home and the buyer hired one of his subordinates to represent him in the buying process. This buyer is a CEO of a large corporation. The agent is an underling in this corporation who has only closed 2 transactions in her 2 year career. She did almost everything an agent can do to screw up the transaction. From beginning to end it was one objection after another to a point of crazy. Normal experienced agents can handle questions without making them objections. Even though solutions and answers were given, she proceeded to object to every solution without knowledge. One example is saying a window was going to fall out when it simply needed caulk. Another example was the electrical panel would burn the house down when it simply needed round end screws to be tightened. Another example is radon at a 5 level will eventually kill the occupants and one cannot move in until its 4 or below. “NO” long exposure is what causes cancer, not short term exposure. Getting it fixed is easy. I can go on, but you get the picture. She made enemies of everyone. That’s not the type of agent you want working for you!

           When hiring an agent, look for experience. Ask for recommendations. Check them out. Get references. Don’t just go with the easy acquaintance, it could cost you in many different ways. To check our experience and our references, please go to our website at www.maecker.com or google us. 

Thanks

Brian

Happy New Year!!

by Brian Maecker

           Can you believe its 2017? It is true the older I get the faster time files. This last year was no exception. We had another record year of 223 sales. Thank you for helping us achieve these sales. Your referrals accounted for 90% of our business. I am so very grateful to each of you and I promise to continue to do our best to take care of you and your friends and family.

           The home selling process was a difficult time in 2016. We saw some big changes in lending and appraising that has really lengthened the whole transaction. We lost almost half the appraisers in the county due to new state regulations. Lenders now require extra time to process loans due to Federal Regulations. If we had some of these restrictions in place 10 years ago we might have avoided the mortgage meltdown.

           So where is 2017 headed? I think we will see more balance in the market. Competition for buyers on homes below $250,000.00 will stay much the same. Inventory is still low below $300,000. Above $500,000, there is plenty of inventory and the market is slowly improving. We still need more high paying jobs. Interest rates are forecasted to climb, but I think they will rise slowly. Today they are around 4.25%. We may see them hit 5%. Here’s the kicker, they are still low! In the 1980’s they were 15-16%. Early 2000’s we got to 8-10%. So 4-5% is still a great rate.

In summary, it’s going to be a strong year. If you are a move up or lateral buyer, it’s a good time. If you are wanting to move down, the challenge is finding something. Call us and we can be very specific and help you or your friends.

           Thank you again for all your referrals and support. We have Free Notary and Fax Services here for you. Come on by and say “Hi”. 

Happy New Year 

Brian & The Team.

Displaying blog entries 1-3 of 3

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The Brian Maecker Team
RE/MAX Advantage
5590 N. Academy Blvd.
Colorado Springs CO 80918
719-593-2963
Toll Free: 888-593-2963
Fax: 719-599-7777