Home Buyers Use Reason and Logic in the Current Economy

Ignore the news and tune out the chatter “the sky is falling” is easier said than done. If we are not in a recession, then we act like we are. We have allowed fear to become the overiding factor causing many to do nothing when it comes to investing in real estate. One should remember that real estate is a long term investment and has proven to be one of the best investments overall. Of course, there should be some skepticism and caution given the current outlook of our economy, but skepticism and caution should be tempered with reason and logic and not become out and out fear.

From Right on Your Money by Dan Kadlec in Time Magazine, Dan writes, “There has rarely been a moment in history when you couldn’t scare yourself into doing nothing. …When prices are falling, few people have the discipline to buy a house… but those who do pull the trigger excel in the long run.”

It seems we are experiencing one of those rare moments where many potential home buyers have been scared into doing nothing. The Federal Reserve is cutting short-term interest rates faster than any other time in history and rate cuts tend to improve the economy in time. Yet home buyers continue to hesitate. The end of the recession, if there is one could actually be in sight.

If you have good credit and plan to stay in a home for at least five years, then it’s time to get serious.

Now is the time to buy before interest rates start to rise and they will sooner or later. When they do, this will wipe out any gain you think you might have by a further drop in prices. Also, home prices may stabilize and sellers may become less willing to negotiate.

Dan Kadlec uses this example:

Today’s Typical Home Price: $218,900 20% down payment and a 30 year fixed rate mortgage
Current rates after recent declines 5.5%
Monthly Payment: $994.31

Cost in 12 Months?
Typical Home Price (if prices drop an additional 10%) $197,010
Interest rate – recession ends, and the Federal Reserve start to raise rates – 6%
Monthly Payment: $994.94

Conclusion: If you waited a year to buy, you would have saved nothing !
Note: Interest rate quoted to me by a local lender on 2/28/08 was 6.375 (already higher than what Dan used in his example)

Single Family Residential Home Sales – Fannin County – February 2008

Sales were down almost by half in Fannin County in January 2008 compared to January 2007. But, February 2008 is showing a different picture. Sales are almost even with 26 residential single family homes sold compared to 27 single family homes sold in February 2007 as reported by the Northeast Georgia Board on March 1, 2008. Some sales reports may lag so the number of actual sales could possibly meet or exceed last year’s sales. The gap is closing!

Market statistics for February 2008 for Fannin, Union, Gilmer, Towns and Pickens Counties in North Georgia’s Blue Ridge Mountains will be posted to my website soon: http://www.move2northgeorgia.net/

Donna Yates, Georgia Realtor, serving home buyers nationwide. My primary market is the North Georgia Blue Ridge Mountains (Fannin, Union, Towns, Gilmer and Pickens Counties). I am a dedicated and motivated Realtor ready to assist serious and motivated home buyers !

Gone Fishin’… Get Hooked on the North Georgia Mountains

Finally, September is here!  I will miss summer and it did fly by but “stars above” we had some hot temps in August.  Much of the month was over 100 degrees which is very unusual for the cool North Georgia Mountains.  Now the cool mornings and evenings are back and it feels like a cool splash in the lake!  Ahh, refreshing for sure. 

With September comes the first hint of autumn color and there’s nothing like Fall in the North Georgia Mountains.  It’s a great time to be out and about in North Georgia after a long week in the grind.  There’s plenty of family recreation such as horseback riding, festivals galore, shopping, rafting and why not fishing?!  I haven’t written anything about fishing yet and I thought it was high time to do so.

The northern third of Georgia boasts beautiful streams, rivers and lakes.  Plan a trip together as a family and go with the flow.  Let’s talk about fishing…  First of all, wear good shoes, not sandals or flip flops.  Everyone over the age of 16 years old must have a fishing and trout license.  It’s a good idea to get the trout license since the majority of North Georgia’s streams are designated trout streams according to the Georgia Department of Natural Resources.

Rainbow and Brown Trout are the two most common species associated with North Georgia but catching other species is very likely, especially in the Fall.  A rule of thumb is that you have a better chance of catching trout the farther upstream and will probably catch a multitude of native warm water species in the lower streams.  Here’s what you very likely will catch: 

• black bass
• sunfish (redbreast and bluegill) bluegill may be found on steep rocky banks in six or more feet of water
• catfish
• crappie and white bass  – may be found in ten feet or more of water, creek channels, main river beds or even water around boat docks
• possibly striped bass and walleye

Visit Lake Blue Ridge Marina or any of the marinas on many other lakes throughout North Georgia for recommendations on where to fish and what kind of tackle to use.  Lake Blue Ridge Marina will rent pontoon boats as most other marinas will too.  Pontoon boats are great for families and provide a slow, lazy day of fishing.  Also, fish from the banks – walk easy and fish slowly.

Prepare yourself for great memories (don’t forget the camera) with your family and maybe even one of the best fish dinners you’ll ever have! 

Donna Yates, Realtor with Mountain Investments of North Georgia.  See Donna’s website for great mountain properties for sale; buyers and sellers tips and advice; request free market analysis; and other great tools for your real estate needs.  Donna Yates Real Estate – let Donna help you find your mountain investment.   Visit:  www.move2northgeorgia.net