3 Common Real Estate MYTHS for 2013

February 11, 2013

  AS we move into 2013,  the question on everyone’s mind is : What’s going on with the real estate market? . Right?  That’s because we all know that EVERYONE is interested in real estate, home values, interest rates and Realtors®.  After all, we Realtors® are the most important people on the face of the earth…which is why we put our picture on everything!  But I digress..

Myth #1 :  Now is NOT the time to list and sell my house..its too much of a buyers market.

…While it might be true that the general feeling is that it’s a buyers market, in recent months statistics have shown that the inventory of homes listed for sale is starting to drop. The numbers are starting to show a shift in several key categories important to clients looking to sell their homes.

Compared to the 4th Quarter of 2011, the 4th Quarter of 2012 saw a decrease in the number of homes for sale. A 12.3% decrease to be exact.  **

Add to that the fact that the number of homes sold in the same time period  increased by 21.2%**

**Greater Harrisburg Association of Realtors (click for full report)

What does this mean? :  Inventories are starting to drop, and demand is starting to rise. And as we all know from ECON 1o1 , Falling supply with rising demand = $$.

With these numbers and the current interest rates, NOW is a great time to put your home on the market. A properly priced home, with the proper marketing  WILL SELL.  Additionally, if you are buying another home after you sell yours, you can take advantage of MYTH #2.

Myth #2    Interest Rates will always be this low, no need to buy now. 

In 2013 interest rates will go up. That’s just  my prediction. There are a lot of signs that interest rates will begin to rise. Mortgage professionals i talk to are saying they agree. Rates will still be low, but they might begin to tick up.2013 rates.

The reasons for this are many. The FEDs monetary policy should be kept a close eye on. Treasury Notes are of major importance. The following excerpt from ABOUT.com explains the relationship between T-notes and Mortgage interest rates.

“Treasury notes directly affect the interest rates on fixed-rate mortgages. How? When Treasury yields are higher, so are interest rates. That’s because investors who want a fixed return on their money will either shop for Treasury notes, CDs, money market funds, mortgages or corporate bonds. Treasury notes are considered ultra-safe since they are guaranteed by the U.S. government. CDs and money market funds are slightly less safe, since they aren’t guaranteed. However, that safety comes with a price – a lower return.

Investors who want a slightly higher return, and are willing to accept more risk, will buy mortgages. Instead of buying the mortgages directly, they usually purchase products backed by mortgages, called (you guessed it) mortgage-backed securities. When Treasury yields rise, mortgages also have to provide higher returns to attract investors. The result to the borrower? Higher interest rates. ”  ( see full article )

With rates still around 3.5% -4%, buyers should be thrilled and beating the streets to buy properties now. I have seen a fair number of people putting it off for one reason or another. What they should be doing is buying now rather than later.

Myth #3     I don’t need a Realtor®

You always should consult and hire a professional real estate agent. Certain things in life you should always hire a professional to handle:  you wouldn’t try to diagnose your own chest pains and you wouldn’t try to install your own in-ground swimming pool. It just makes sense, when  there is the potential to make or lose a lot of money or die, to hire a professional.  Realtors® are trained and experienced in the nuances of the real estate transaction .  We are trained to negotiate the best possible terms for our clients and we follow a strict Code of Ethics.  (see my blog post on Realtors for some great info.)



1917 Roxbury Ct,- FOR SALE Mechanicsburg Real Estate

August 20, 2012


This beautiful townhouse was just listed for sale in desirable WInding Hills.

Please click on the link below to see all the details and many pictures.

1917 Roxbury Ct, Mechanicsburg, PA | Powered by Postlets.

Cal Williams


Century 21 Realty Services.



Mechanicsburg Townhouse For Sale – Below Market Value

August 19, 2011

This townhouse has been reduced to below market value. over 2700 Square feet. Watch the tour and please leave me your comments.



Play VisualTour

What you need to know about Fannie Mae and Freddi Mac

June 9, 2011
  • ‘Extreme’ Changes to Fannie, Freddie Could Wallop Your Wallet

    If you’ve taken out a home mortgage — whether to buy or refinance — you may not realize it, but Freddie Mac and Fannie Mae, known as government-sponsored enterprises (GSEs), were behind the scenes helping to keep your interest rate payments lower than they might otherwise have been. So why do some on Capitol Hill want to eliminate Fannie and Freddie and make it harder for you to buy a home? Read

Visit houselogic.com for more articles like this.


Avoid a Short Sale, Stay In Your Home – New FHA Refi Starts September 7, 2010

August 21, 2010


A recent article by The Pennsylvania Association of Realtors outlined a new program being rolled out by the U.S. Department of Housing and Urban Development (HUD). Offered through the Federal Housing Administration (FHA), This will allow some homeowners to refi their homes even though they may owe more than the market value. The program will allow for lenders to to write off at least 10 percent of the unpaid principal balance of the first mortgage.

Click on the link below to read the article, courtesy of the Pennsylvania Association or Realtors.

FHA launches short refi for underwater homeowners.

Please leave any comments or questions.

Cal Williams

Mechanicsburg Realtor

Straub and Associates Real EState Group


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