FSBO BLOG

According to 20-city index released Tuesday, from financial data company Standard & Poor’s and economists Case-Shiller, showed the value of U.S. homes grew on a monthly basis in May for the first time in nearly three years. “This could be an indication that home price declines are finally stabilizing,” said David Blitzer, chairman of the index committee S&P.  FSBO.com is seeing the rate of foreclosures slowing, the inventory of properties decreasing and the pending sales increasing. While the bad news has slowed down it will still take awhile for the upturn in housing to start. Remember our predicition on March 12th, 2009: “FSBO.com predicts the bottom in housing sales will be in the 4th quarter, 2009, as last minute buyers take advantage of the 1.tax credit expiring 12/31/09  2.low interest rates  3.depressed housing prices”  

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I need a new car, but I would like to own a house, which should I do first?  

The new government incentive ($4500) towards the purchase of a new car is very enticing. At http://www.cars.gov/ you can learn all about the new federal “cash-for-clunkers” program.  One suggestion, if you currently have a paid off ‘clunker’ and are thinking of getting a mortgage to buy that new house, better buy the house first. With no car payment it is easier to get the mortgage approved. If you buy the new car first and have a car loan, that payment works against you when applying for a mortgage.

With a ‘First Time Homebuyer credit’ and a “cash-for-clunkers” program, now is a great time to do something. Prices are down and so are interest rates.

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