July has brought about a new burst of enthusiasm from buyers looking for real estate in Big Canoe. The responses to our last blog about the Big Canoe foreclosure on the creek kept me busier than a squirrel collecting nuts in Fall! I was also delighted to see that I have officially contradicted myself in the prior blog about fixer-uppers in North Georgia as there are still some folks out there that are ready to dust off the old tool box and make an “ok” house better! Other agents I have been talking to have agreed that they have been busier than usual. So, what has caused this apparent increase in activity?
Here’s what I think – First of all there has been a slight but steady increase in rates (6.25% in January to just under 7% in July), and some are starting to worry that they may miss the low rates boat. Secondly, home prices have dropped (including new construction) to the point where sellers are willing to either lease the home or simply take it off the market until things improve. In theory, if this happens then the surplus will go down and the prices will go back up. Third, Americans by nature can not resist a bargain. Low home prices plus low rate mortgages equals a good deal!
In a final note I say let this “strong breeze” be good sign to a turning market.
Karin Elliott July 3rd, 2008