Weathering the storms...

Will it be a White Christmas?
With temps predicted to hover in the mid-twenties through the week, and more precipitation due mid-week…we could be setting up for a White Christmas!
Yes, snow days mean traffic snarls, school delays and schedule changes, but snow also gives countless young children their first look at a winter wonderland. There will be snowmen, snow-angels, snowball fights and (with enough snow) toboggans and sleds. For snowboarders and skiers, the snow is a gift in itself for now ski resorts will open their doors.
Although I no longer ski (I’m more of an annoyance on the slopes than a skier), snow on Bainbridge is always an exciting prospect. Let’s all enjoy this time with friends and family, and be thankful to live in such a wonderful and vibrant community.

First time buyer?
Ah yes, exciting times in real estate these days…every bit as exciting as the prospect of snow.
We’re told the government is hoping to bring interest rates down from their current rate of (about) 5.5%...perhaps as low as 4.5%. Many first-time home buyer’s are entitled to a $7,500.00 Federal Tax Credit if they purchase before June 30, 2009. At this time, that credit is an interest-free loan, but there is talk of making it a credit that does not need to be paid-back.
Buyers are able to negotiate in this market, often getting loan points paid or other concessions helping to make their new home even more affordable. For some, buying now ends up being less expensive than waiting to see if the market will drop another 10%: the money saved on the lower interest loan and seller-paid closing costs save more over the course of the loan than buying the house at a lower price.
Even with historically low interest rates and the Federal Tax Credit, buyers are hesitant…stuck between low house prices and the possibility of lower home prices. Too bad none of us know where the bottom is for the market, or when it will turn around. With new housing starts on Bainbridge at a virtual stand-still, some predict that we will see a housing shortage when the economy recovers.
The future remains to be seen but remember, the basics are back (hopefully to stay). Consider paying no more than 28% of your pretax income on mortgage payments, taxes and insurance. Also, remember to keep track of your credit score and take steps to improve it if necessary…a good credit score can save you a lot of money when it comes to your new home loan.
All for now…