Undoubtedly, the most widely discussed topic today is the state of our economy and the impact of the credit crisis. It is the source of heated debate about the need for stimulus and bailouts, and so many of my friends and clients are asking what all of it has to do with them personally.There is a direct connection between you and your mortgage and the trouble that banks and financial institutions have created. There is also a very real connection between that trouble and your financial future–what will happen to the value of your home, which may be your largest investment.
The Crisis of Credit Visualized – The Big Picture
I was browsing my Twitter account one day, and found this link to a video from one of my followers. It is exceptionally well done and helps to explain what happened to our credit markets, and how it is related to you and your home. Please check it out:
The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo
Certainly, there is more complexity involved than this video can portray, but it goes a long way towards explaining why we are where we are. The uncertainty of the future, consumers burdened with excessive debt, and unsteady property values compound the effects, such that we should not wonder that banks are complaining that nobody wants to borrow money. Unfortunately, in our country, in our time, we have built an economy based on buying with credit and living with debt. Nationally, we have a very large problem.
So, What Does This Mean To Me and Buying or Selling a Home?
There’s good news, especially if you are looking to buy or sell a home in Fayetteville. The local economy is still relatively strong, and home values have increased in general. In fact, according to Zillow, Fayetteville leads the nation in home price stability, showing an increase in overall home values of almost 7%, better than any of the other 160 markets that Zillow tracks. Additionally, we expect growth of 20,000 more families between now and 2011 under the Defense Base Closure and Re-Alignment Commission (BRAC). Lenders have money to lend, and VA and FHA loan programs are widely used and available. The real estate market remains balanced for homes in many price ranges, and there are some great homes available at reasonable prices. All of this bodes well for both buyers and sellers in the local area.
If you are considering selling your home or buying a new one here in Fayetteville, please be call me or email. I would love to provide more information on specific houses or neighborhoods or help you find a reputable lender to get the process started.