Recently, the fed has come out and cut the Fed Fund rate a surprise 75 basis points. The feeling is there will be additional cuts of 25 – 75 basis points over the next couple of month coming. These are giving us interest rates that are extremely low. Jim Cramer talked recently about how he liquidated his real estate holdings about two years ago but said he is looking to buy again. On High Net Worth, he stated, “Mortgage rates are so low I can not afford to miss this opportunity.” He called it a “no choice perspective.”
Real Estate is in a buyer’s market and interest rates are extremely low. Warren Buffett once said something like this when talking about stocks. When toilet paper goes on sale, we always buy more. Yet when stocks go on sale, people get scared and sell. They only buy when stocks go higher.
Richelle and I feel real estate has a similar reaction from people. Now is the time to look at taking advantage of this market and to see if there are opportunities that make sense for your situation and time table.
