In the Williamsburg area we are starting to see signs of activity, but there are positives and negatives. The inventories remain too high and the slowing economy has reduced the number
of buyers entering the market. Financial problems have paralyzed lending institutions and hampered the use of short sales to clear out the market. Just try to get an offer put through
to a lender on a short sale and see how long it takes!


A Positive:

The Federal Reserve announced that it would purchase an additional $750 billion in Fannie Mae and Freddie Mac mortgage-backed securities and up to $300 billion in longer term Treasury securities. This is great news for home buyers and homeowners because mortgage interest rates will continue to remain at historic lows. With the first time buyer tax credit of $8000
and the very low interest rates (sometimes as low as 4.25%) you need to pay attention to the
market if you are a buyer. You need to be looking at homes, getting familiar with properties offering excellent prices and have your lender selected and be ready to lock in an interest rate when the rates
dip down. You can't pull this altoghether quickly. It is a process if you want to do it well. Always havea pre-qualification letter from a lender if you plan on viewing homes. A Realtor can help you with this. It is very simple to do. Use a lender that is known in the area to avoid issues later.

Give Jack and me a call. We love to help our clients find a great home and a great deal!

Sellers have another story. Your home needs to be priced competitively and not have issues
such as unfinished projects. Your home needs to sparkle and have been updated.
No clutter!!!

We are recommending pre-listing inspections for home sellers. This gives buyers confidence
that the home you are selling does not have hidden issues.


More on the first time homebuyers tax credit. I really feel this will spur activity.
Under last years $7500 tax credit, homebuyers had to pay back the money over the next 15 years. Now with no repayment, the refundable credit becomes much more attractive, especially
combined with favorable home prices and interest rates.

According to the National Association of Realtors:
“Greater numbers of home buyers will be able to purchase a home, and homeowners facing challenges will be able to refinance into better terms. We already are experiencing a great improvement in housing affordability due to historically low interest rates, and the Fed’s move will push affordability conditions to the best levels in 40 years."

Some real estate gurus are predicting that we are poised for a sharp comeback of the real estate
sector. We should see signs of this by late summer. Hang in there!