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A RAINY SATURDAY IN FREDERICKSBURG

 By Jack Arnold, Broker Associate
May 16th
May 16th

On Saturday, May 16, 2009 we awoke to a dark and cloudy morning.  The television reported rain in Llano and headed our way.  Shortly, we heard the beautiful sound of raindrops on our tin roof.  A few at first, then a torrent.  The patio soon glistened with pools and rivulets.

 
 
                                                                        
Rain

Rain

  Rain is a welcome happening in Fredericksburg and is best enjoyed by being out in it. 
So Sunya and I got into my Jeep to see  how  everyone else was celebrating.

 

Town Creek

Town Creek

 We first checked to see if Town Creek was flowing over the water crossing on Schubert Street.                                                  
This is called the Duck Crossing.   Sure enough, the water was flowing over the street, but just  barely.

 
 
 
 
 
 
Main Street

Main Street

Then we checked out Main Street.  Wow! Wall to Wall cars.  on a Saturday Morning and in the rain.  What were all these people doing?

 

 

Umbrella Parade

Umbrella Parade

They were looking for a parking place so they could join the Umbrella parade.  and where was the parade going?

 

 

 

Street gutters

Street gutters

Wherever it was going it did not let the water flowing in the street gutters stop it.

 

 

 

Mor fun shopping in the rain

Mor fun shopping in the rain

The people were going shopping.  the rain just made it more fun and besides, how often do you   get to display your red or green

umbrella         

 

                                                                                                    

 

Rain headed east

Rain headed east

Shortly after noon our rain storm moved off to the East.  Headed for Johnson City and Austin.  But it did leave us with .83 inches in our rain gauge and with happy grass, trees and visitors.

 

 

Perfect Sunset

Perfect Sunset

And as if we had not been blessed enough by the beautiful rain, the sun, and lingering clouds provided the perfect sunset for those lucky enough to be here.

 

 

                                          

Rain      Sunya did have one complaint.  she did not get to run in the rain.  Maybe next time.

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May 20, 2009 Posted by | Fredericksburg TX | , , , , , , , , , , , , , , , , , , , , | Comments Off on A RAINY SATURDAY IN FREDERICKSBURG

Time to buy is RIGHT NOW

 

Mimi Bartel, Century 21 Sunset, Realtors Broker Associate
Mimi Bartel, Broker Associate

U.S. home prices have declined across the nation in the past year—albeit at varying levels. Latest national price declines range from as little as 4.5 percent (Dallas, Texas) on a year-over-year basis in February to as great as 35.2 percent (Phoenix, AZ) according to S&P’s Case-Shiller Home Price Indices.

It is the anticipation by many prospective buyers for further home price erosion that keeps them on the sidelines and from participating in homeownership despite the lowest interest rates since Freddie Mac commenced the statistical series in 1971.

While further price declines may be realized, the likelihood of rising interest rates makes purchasing now a better option than waiting for further potential value declines. Simply stated, there is a greater possibility of interest rate increases than potential value declines. Even with the price decline, the interest rate increase may result in the buyer no longer being able to qualify for a loan on a home they wish to purchase for which they qualify today. Despite facing a potential in declining home values, now may be a better time to buy.

To make the comparison simple, let’s assume a loan amount today of $100,000 with a 30-year fixed-rate residential loan at 5 percent. Nationwide at the time of this writing, the average 30-year rate was 4.85 percent per Freddie Mac.

A buyer today at 5 percent interest borrowing $100,000 has a monthly principle and interest payment of $536.82. If prices decline 5 percent (and the loan amount does also) and interest rates rise just ½ of 1 percent, then the monthly payment remains the same ($539.40).

So if rates go up just 1 percent to 6 percent per year, then prices must drop at least 10 percent for that same buyer to qualify for the same monthly payment. A 1.5 percent increase in rates to 6.5 percent requires a 15 percent price decline, and a 2 percent increase necessitates a 20 percent price decline to qualify.

(Note: This 1 percent interest rate change to a 10 percent price change is only true when interest rates are 5 percent as they are today.)

Why will rates increase in the future more than prices decline? Looking at the S&P’s Case-Shiller Home Price Indices, the aggregate 20-city prices have already declined 29.1 percent since peaking in July 2006. For many cities, much of the price decline has already taken place. And Austin has seen very little decline in the median home price! And why will rates increase? Massive deficit spending has a high potential to drive up inflation and hence interest rates. Additionally, since these are the lowest rates since 1971, it’s not hard to project the likelihood of rate increases.  

So NOW may be the best time ever to buy a home and take advantage of truly historic low interest rates!

 
Information provided by Ted C. Jones, PhD, Senior Vice President—Chief Economist, Stewart Title Guaranty Company.    

May 20, 2009 Posted by | Fredericksburg TX | , , , , , , , , , , , , , , , , , , , | Comments Off on Time to buy is RIGHT NOW