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Interest Rates Drop Due to Fannie Mae Bailout-About to be the best time to buy a home in Columbus, OH in a decade

Posted by Mike Parsons
September 09, 2008 at 07:51 PM

We have seen rates drop almost a half point in the last week. Many buyers that have been sitting on the fence may jump in now. Many of these teetering buyers are first time buyers. They help stimulate the domino effect of buying a home that allows another family to move up to a more expensive home and so on. This will help to counteract the typical slowdown in Columbus, OH starting in September after school starts. My own thoughts lead me to believe this winter will be on of the most ideal times to buy a home in the last decade. High home inventory due to adjustable mortgaqes going adjustable, school starting which really slows the market, temporarily over protective lenders that make it tough to get financing on homes that aren't perfect, and super low interest rates will lead to a perfect storm of excellent real estate values. Buyers who buy in December and January when the market is the slowest and there is snow on the ground will be very happy with their Columbus home investment in the next five years after our inventory stabilizes. I believe values/prices will begin to stabilize in Spring of 09'. Don't get me wrong, around Spring its still going to be a little messy out there I just think this Winter will be the bottom of prices. By this time we will see almost all of the ARM's have been foreclosed upon, sold their homes, or have refinanced out of their problems. This will lead to less Bank Owneds on the market and less new inventory coming into the marketplace. Our older, established areas have been solid (Worthington, Grandview, Upper Arlington, Clintonville) and even getting multiple offers for homes in awesome shape or that were renovated. We have seen the biggest problems in areas that have newer homes, condos, and in areas that have lesser rated school districts. Some of the best below market opportunities might be in some of these newer areas that are nice but are swamped with temporary huge numbers of competing listings. It will take a couple years for these sub markets to stabilize but for the buy and hold homeowner or investor I think this winter will be the bottom

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