Bruce Nemovitz

We hear about the Fed rate being cut to avoid a recession or to stimulate the real estate market. In some ways this can be detrimental to one’s retirement account returns, but in other ways it can be a boost to our current real estate environment. Many folks postponed the sale of their home last year due to a sluggish market and the perception that homes were not selling. Yes the market numbers were down from previous years, but as I stated in past articles homes sell in any market. Proper preparation before listing a home can be crucial to achieving a successful sale. Sellers who followed my advice of preparation and proper pricing did sell their homes last year in a reasonable time for a fair market value.

This year promises to hold much optimism for a rebound of sales as well as shorter selling time. Prices should hold steady throughout 2008, as there is a substantial inventory of homes on the market going into the spring. Interest rates are a spark plug initiating purchases from buyers who have been watching and waiting on the sidelines. They add a psychological boost to those who fear making an investment that may in their minds go south. Therefore, even though the rate has been attractive for quite some time (6.1%-6.75% in 2007), a rate cut to a potential buyer means lower payments and more stability for the future. Rates for purchasers are currently hovering around 6% for a 30 year fixed rate mortgage.

In this last reduction by the Fed, the Fed discount rate was reduced by ¼%, which was a disappointment to Wall Street because a ½% rate cut was anticipated. Therefore the stock market lost 294 points. Future rate cuts are anticipated, as recession is something to be avoided by our government. Therefore, all signs point to a tremendous environment for stronger real estate sales. This is a rare moment when home and mortgage pricing both have gone to the buyer’s advantage at the same time! The advantage as a seller is a greater number of potential buyers, shorter market time, and stronger sales! That is why I feel strongly that 2008 will be a recovery year for real estate sales. It may be gradual, but I feel momentum will carry throughout the year. 2008 should be a great time to put your home on the market if you have been waiting for the right moment to make your move to your new senior community that will enrich your lifestyle.

Bruce Nemovitz is a Senior Real Estate Specialist, as well as Certified Senior Advisor. Bruce has sold residential homes in the four county Milwaukee-Metro areas for 30 years. He has just published a book called “Moving in the Right Direction”, a Senior’s Guide to Moving and Downsizing. He works with his wife Jeanne and assistant Boni at Realty Executives Integrity.

Please feel free to call Bruce or his team with any real estate questions, you may have at 262-242-6177, or email at Bruce@BrucesTeam.com. You can go to their website at www.brucesteam.com and view the many articles and important information related to moving and downsizing!