Todd’s pulled out his crystal ball, is staring at the tea leaves and generally trying to help predict what the 2010 Plymouth, Michigan housing market is going to be like.
We all know that the 2009 real estate market was less than stellar. Â The silver lining in 2009 is that, despite many predictions to contrary, homes actually sold! Â New mortgages were funded and folks were able to rest their heads in new domiciles.
In fact, here’s a numbers breakdown of the 2009 Plymouth, Michigan real estate market. Â Graphs too!
What’s in Store for 2010?
If you believe that you will be purchasing a home in 2010, you are advised to do so earlier in the year. Â The first half of 2010 will see the best rates and incentives. Â Remember, to take advantage of the tax credits that Uncle Sam is offering, you need to be under contract by April 30th and closed by June 30th. Â This may preclude you from even considering short sales, as banks are still taking quite a while to respond to offers.
Also, please remember that a 1% rise in your interest rate can wipe out the 10% value decline you may be waiting for in a short sale purchase. So often, people focus in only on the “home pricing” side of the equation without considering the “mortgage interest rate” side of the analysis.
With so many folks upside down on their home (no equity or negative equity in their home) there is a lot of talk about strategic defaults. Â And while it may appear to make sense on the surface, it is full of some pitfalls you need to know. Â Strategic default is the process whereby a home owner negotiates a short sale without any economic hardship to justify the short sale. Â It is a tactic to simply move out of a mortgage that is too high.
The first thing to keep in mind about strategic defaults: it is the exception, not the rule, that banks will even consider a short sale without justifiable economic hardship.
The second thing to think about: Â upon culmination of a short sale, the banks are reporting the default amount to credit agencies. Â Without speaking to a credit counselor or your financial advisor, there is no clear cut answer with regard to just how severely a short sale may damage your credit, other than to say this: there will be damage.
Every two years, the elected officials for our state and federal levels are up for re-election. Â In fact, if it’s an even numbered year, you can guarantee that by about July 1st, and then again, October 1st, you will see an incredible crop of lawn signs pop up. Â Kind of like mushrooms and other fungi after a rain and some warm weather…
The reason this is even worth mentioning: Â if you are in the process of selling your home in this challenging market, you need to make your home as appealing as possible to as many people as possible. Â By placing your favorite politicians’ sign in your yard, you could be turning potential buyers off from even considering your home. Does that come off as petty or trite? Perhaps. It is the reality of the situation? Probably.
In conclusion, these are factors you might want to consider as you make decisions involving the possible sale of your home. I hope this information is of benefit to you!