The mortgage market is definitely on shaky ground and it is impacting the real estate market- even in Marin County. So, should you buy, sell or hold? This is a great question without a blanket answer.The news reports indicate that the market is going to tank, but they often paint a wide doom and gloom picture of what is happening. The Marin real estate market is substantially different than the rest of the country. The cities, towns and even subdivisions within Marin vary greatly with regards to the state of the market. Some areas have been hit pretty hard this year. Many have not. There is no doubt the lowest priced homes and the more affordable neighborhoods have suffered but overall, Marin County has still done pretty good.
The median price in Marin County increased 4.15% over July 2006. Sales were up 11.05% while inventory was down. More sales and fewer listings? Doesn’t sound like a crashing market to me.
For Buyers
- Watch the specific sales stats for the neighborhood you are interested in moving to. What is happening there? How many homes are on the market? Are properties selling quickly or are they sitting on the market? Are you seeing lots of price reductions in the neighborhood? Don’t know? Call me or email me for specific sales activity and other market statistics for your the neighborhood you are interested in purchasing in. Now could be a great time to purchase in a neighborhood where properties are languishing on the market.
- What is your credit like? If you have excellent credit, it can still be a great time to buy. Credit scores under 740? Talk to a mortgage broker who can help you with a strategy to boost your scores.
- Have a substantial down payment? Your loan will be easier to obtain and is likely to have a better rate! Low on cash? Save your pennies!
- Find a mortgage broker you trust who can help you navigate the process. (Not a bank, a broker!) Don’t skimp on fees right now, don’t find your lender online. Hire someone honest and reputable. Your real estate agent should be able to recommend someone to you who can guide you through the tricky mortgage process. Good brokers have established relationships and preferred rates which can be as much as a full percentage point below some of the big lenders.
- Talk to your mortgage broker about submitting loan applications to to multiple lenders. The mortgage market is volatile and having a back up in place is a good idea.
- Don’t rush things. Reputable lenders with good rates are backed up. Plan ahead! Give your lender 30-45 days to close escrow!
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