THE SAFETY NET IS GONE...

the Fed will now gradually become a seller of their massive holdings of Mortgage Backed Securities and home loan rates have already moved higher and are very likely to continue to move higher still. Even though rates took a jump higher last week they remain at reasonably low levels. THIS MAKES NOW THE CRUCIAL TIME TO TAKE ADVANTAGE OF THE PERFECT BUYING STORM~LOW RATES AND THE HOMEBUYER TAX CREDIT! To take advantage of the generous credit, purchase contracts must be signed by the end of April. If you or someone you know has questions about this credit - please don't wait to get in touch with me.

BTW; The National Association of Realtors reports its index of pending home sales rose 8.2 percent from January to February.

Foreclosures are finally hitting the high country with auctions now becoming a weekly routine. Short sales are also commonplace in a place that thought it was immune. Pressure on prices should be downward for the next six months or so as these work their way through the system. If you have been holding out waiting for the market to get to your level; it has arrived. The time is now before interest rates climb. Why? Good question; because a 1% rise in interest rates roughly offsets a 10% drop in prices. Predictions are interest rates will climb into early summer as the Federal Government stops supporting the system.

The National Association of Realtors predicts that the market for second homes will remain strong in the long term. About 40 million people are 50-59 and another 44.8 million are 40-49, these are the prime years for second home purchases. Behind that are another 40 million people aged 30-39 meaning we are looking at another 20 years of large numbers of buyers in their prime. The size of the market is huge; 48.5 million vacation and investment properties or 41% of the total home market, as of 2008. Indications are the mountain real estate market should begin to show signs of a turnaround and return to a growth state very soon. The market should soon resemble the late 90’s when everyone thought their stocks were a better investment than real estate. Our real estate prices resemble those of 2005 while the stock market looks more like 1998.