Maine Waterfront Property – Opportunity Will Knock

Maine Lakefront Real Estate – Keeping Up With “The Times”
November 29, 2008
Maine Lakefront Real Estate – Making the Best of a Tough Market
December 7, 2008

Maine Waterfront Property – Opportunity Will Knock


If you are among those who think we’re in the middle of a deflationary cycle with regards to lakefront real estate, you’re not alone.
It would seem that buyers continue to sit on the sidelines thinking prices will continue to go down. So far, so good, but playing the waiting game is fraught with peril because no one, and I mean no one, can call the bottom of any market – real estate, stock, bond, currency, gold, commodities, or fine art, furniture and antiques.
What we can do, though, is look at trends and draw inferences from history. Look at this report from Leeb’s Market Forecast yesterday:
A widespread thaw in the previously frozen credit market is taking place right now. Rates on conventional 30-year fixed mortgages have dropped to 5.7 percent nationally, down from 6.45 percent in October, according to BankRate.com. Thats a three-year low which has helped to push housing affordability back towards its record high. This fact hasnt been lost in consumers, as mortgage applications surged by a record amount last week to the highest level since March. Housing remains the key to a successful turnaround and the move in mortgage rates is just whats needed to get things moving.
If the rate for a 30 year mortgage continues to fall, buyers will find it hard to resist getting back into real estate. The same with stocks – as price-to-earnings ratios continue to drop to historic lows, investors start seeing bargains. When confidence in the future returns (as rates come down and prices fall), fear of the market will be overcome by the perception of opportunity and real value in the market.
At Mr. Lakefront we are not market timers, but we do know that preparation is the key to being able to answer that door when opportunity knocks.
Keep in touch with a local lender to know what that 30 year mortgage rate is doing. With the lack of activity in the real estate market over the last 12-18 months you know there has to be a lot of pent-up demand.
As soon as buyers perceive that money is available at an attractive rate and a lakefront property comes to market that is priced attractively, that will be their moment to act.
By the way, you can use our Lakefront Locator to stay on top of all the current lakefront listings for the entire State of Maine. It’s easy to use, comprehensive, and updated continuously.

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