Main Line Homes Blog

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What's holding you back?

Many Tredyffrin Easttown home buyers today are frustrated because interest rates are low and they want to buy a home but the number of homes for sale is not keeping up with demand. This being said, many buyers are so used to low interest rates that they are not aware of just how low these rates are and any uptick is making them hold off purchasing as it impacts their buying power.

So let's look at this logically for a minute.

1981 saw mortgage interest rates at 18.63%. Since then they have steadily declined. They hit bottom in 2012 at 3.31% according to Value Penguin.

The real estate world has since 2012 been talking about how rates are going to rise as they realized that the market would push rates up, but it has happened slower than everyone thought for many reasons, global and national.

However, we saw a determined effort to push rates up over the last year to slow the economy a little to prevent inflation. This was working nicely, it was motivating many homebuyers as they saw the rising rates and wanted to take advantage of low rates before the interest rates rose too high.

However, a lack of inventory has also pushed up prices, holding back many buyers from purchasing, the rising rates has slowed the price rises a little but home prices have still been rising. In January we saw rates actually drop and settle a bit which was somewhat unexpected.

Currently, the feeling is that rates will remain in the range of 4.25-5.5% over the next year, and probably will remain under 5% for a little longer. So many new buyers though are hoping rates will fall back because that is all they have known for many years.

Folks, barring another economic disaster it is not going to happen and you would be well advised to find a home soon and get it under contract and lock your rate. 

So, what is holding you back? Student loans, interest rates, lack of homes for sale let's meet and discuss options for each of these. Contact Nick Vandekar, Tredyffrin Easttown Realtor, Selling the Main Line with Long & Foster Real Estate Inc., office 610-225-7400, cell or text 610-203-4543, email Nick@VandekarTeam.com, website Nick@VandekarTeam.com.

If you are buying or selling on or around Tredyffrin Easttown or along the Main Line we can help you,  contact us or connect

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Comment balloon 15 commentsNick Vandekar, 610-203-4543 • March 21 2019 07:04PM

Comments

Best to start before the rush Nick Vandekar, 610-203-4543  when everyone wants to be into a home before school starts and there is lots of competition 

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) 28 days ago

Amen and amen, Nick! I've been singing this song for a while. I have a few prospective buyers who are now crying because they didn't listen to me earlier.

Folks, barring another economic disaster it is not going to happen and you would be well advised to find a home soon and get it under contract and lock your rate. 

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage ) 27 days ago

Nina Hollander thank you, I have found lots of younger buyers who have only ever known low rates are mentally stuck when they rise slightly, even though they are historically low.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) 27 days ago

Hannah Williams it is always good to start early, remember the early bird gets the worm....

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) 27 days ago

Nick, I just had a call with John Meussner yesterday and he was showing me the cost of waiting to buy with a program he has that's area specific. It was mind-blowing. Buyers need to act NOW, do not walk, run!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group ) 27 days ago

Nick Vandekar, 610-203-4543 - Cheers to a great Spring for you and Trudy!

Now is the time for buyers and sellers to get serious and hire you for all their real estate needs. You are just terrific at helping people and you're trustworthy, knowledgable, and the best in your area!

Posted by Patricia Feager, MBA, CRS, GRI,MRP, Selling Homes Changing Lives (DFW FINE PROPERTIES) 27 days ago

Amanda S. Davidson I think that is very true, in our area our biggest problem is the lack of homes for sale. We were looking at numbers over the last 1-0 years it is frightening how few homes are for sale right now.

Patricia Feager, MBA, CRS, GRI,MRP Thank you, I hope your spring is going to be blossoming out for you as well. I know in your area you are the agent buyers and sellers hould be calling for caring customer service.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) 27 days ago

Hello Nick - what is holding back people from moving forward?  The answers are certainly varied based on people you ask.  Your explanation makes sense for those who may feel aprehension right now.  Will they pull the proverbial trigger?  Again, timing may not be "right".  Will it ever be right?  Does it become right six months or a year from now?  Why then, not now?  Maybe not at all.  

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 27 days ago

People should buy today if they can.  It's a no brainer in most markets for most people.  The long term wealth built through home ownership is the best surefire way to be financially well off for the majority of America.  Those who wait are losing out on opportunity.

Posted by John Meussner, #MortgageMadeEasy Walnut Creek, CA 484-680-4852 (Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA,) 26 days ago

Michael Jacobs it has become clear to me over the years everyone has their own reasons for buying, or selling a house at the time that is right for them. You cannot push a person into buying or selling. You can educate them that now may be the right time for them just as you educate them on price to pay or ask. But, it is always their decision.

Like above, John Meussner everyone has their own right time. We can only let them know the facts, they have to decide for themselves if now is the right time for them or if they need to do more preparation to get ready.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) 26 days ago

Hello Nick,  Why wait, buy now.  I remember buying a home in 1981 and yes my interest rate was high.

 

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 26 days ago

Will Hamm I never experienced that but remember hearing about it and lots of homes got sold.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) 24 days ago

Finding out what’s holding you back is the key to every breakthrough in the history of the universe, am I right?

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) 23 days ago

Nick, Cindy & Nicholas Davis Everything goes in cycles that way and I’m sure there’s always something to learn from it.

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) 23 days ago

Laura Cerrano it is always good to understand yourself and know what it is that holds you back, it allows you to move forward with joy. Sometimes it can be energy trapped in a home, sometimes in your body.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) 23 days ago

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