By Mike Bodeen · 24 November 2014
We Give Thanks – For Much! For You!
In just a few days, we as a nation celebrate Thanksgiving. Yesterday, Sunday, we had our family Thanksgiving meal. Why? Because much of our family will be skedaddling out of the Valley this coming weekend. Karen and I will try and find an open Chinese restaurant in honor of one of our favorite holiday movies, the 1983 (now) classic, A Christmas Story. If you recall, Ralphie’s family is forced to go out to a Chinese restaurant for their Christmas dinner because the Bumpus’ hounds devoured their Christmas Turkey. If you don’t know what I’m talking about, or you’re classier than I am and think that I mean Dickens’, “A Christmas Carol,” I heartily recommend getting it and watching it this holiday season. Actually, it’s become so popular that some stations continue to play it for 24 hours straight.
Since this is a real estate blog, it would be appropriate to start to give thanks for our local real estate market, and there is much to be thankful for:
First, we have a sufficient amount of homes for sale, but not too many…yea, normal.
Second, we have cheap interest rates for home buyers (see article below)
Third, the unemployment rate continues to improve each month
Fourth, new Home Builders have a decent amount of new home inventory to see
Fifth, money seems to be loosening to help buyers in their home purchases
Sixth, more home buyers who were previously foreclosed on or short sold will in 2015 be let out of the penalty box and will qualify to buy a home, which could begin to move values up again
Seventh, foreclosures are edging toward historically LOW rates not seen since the early 2000’s.
INTEREST-ING RATES
Boomers can tell you exactly where they were on November 22nd, 1963, and September 11th 2001. For the greatest generation of my parents, they will vividly remember December 7th 1941, a ‘day that would live in infamy.’
Much further down the line of significance, but still memorable for many would be the time they paid 13% or more for a home mortgage. When I broke into the real estate biz in 1976 in the Truckee-Tahoe area, El Dorado Savings had interest rates at 9.75%. Within two years, rates hit 10% and began rising and stayed in double digit territory till the end of 1987. And what was the peak of the market? October of 1981 where Freddie Mac rates hit 18.45%.
Thankfully, rates began improving, and then got below 10% in 1987, which was another miracle. And then in April of 2009, rates sunk to 5%! The bottom of the market was two years ago in November 2012, where rates were 3.35%. And today, they are backing back down to 4.04%. And that’s another great reason to give thanks!
Lastly, but not in the least, Jon and I are thankful to you, our clients and friends, who allow us the opportunity to have a challenging and rewarding profession that we so much enjoy, because you are enjoyable. Shmaltzy I know, but true!
By the way, the Urban Dictionary defines “Schmaltzy” as: (Yiddish. Overly emotional. Cheesy sentiment, grandiose passion usually accompanied by effusive or overly-demonstrative gesticulations)