By now, we all know the results of the elections. Whether your candidate won or lost, the good news is that it is over! HURRAY! No more campaign commercials. Maybe now we can get on with the business of turning this economy around.
First of all, congratulations to our own Les Veach, (blue house at 110 Seawatch Way). Les was running for town council in his hometown of Winchester Virginia. Looks like he won by 2 votes. His challenger will probably ask for a re-count and if he does, the results will not be final until close to Christmas, but regardless, we know he's a winner! Congrats Les, Sabra and family.
While the markets haven't shown it, we believe that regardless of the outcome, things will now settle down and begin to improve. We noticed that interest rates for a 30 year, fixed mortgage are currently at 5.75% to 5.85% as of today, 11/12. How long they are going to remain in the 5 to 7% range is anyone's guess, but we hear that we should begin to see interest rates going up. That makes this a great time to buy. Even if prices were to drop another 5% or so, a 1/2 to 1% increase in interest rates can mean higher payments even if the purchase price is lower.
From everything I have read, we could remain slow in the real estate market for the 4th quarter of '08 and probably the 1st quarter of '09. (Although, we have begun to see a real increase in the number of showings on the island.) We then believe that the market will have corrected, prices would have dropped to the point that buyers will be back. We don't think we will begin to see the prices make any dramatic improvement until late 2011 or early 2012.
Regardless of the rest of the country, we believe that there are great deals here on the island right now and right now is the time to buy!
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