Well it appears that all eyes are on the Nation’s Real Estate Pricing and Interest Rate’s seemingly continued increases (see the March 22, 2005 post!). What does this mean to you?

For starters, if you are a homeowner that is already enjoying fixed rate financing you will begin to see the benefits of locking in those lower interest rates. This will be particularly true for those that own property to use as rentals. If you have been tied to variable rate financing you are going to start to see the downside. Certainly you have been enjoying lower payments but, like most things, now it is time to pay – literally.

Over the last several months we have mentioned numerous times about the need to “shift” over to fixed rate. Although that ship is pulling out, it is not too late. Real Estate prices, although still booming in a lot of areas, is largely tapering off and beginning the shift to a “buyers market.”

Which brings us to our next question, “Will Real Estate prices crash?” Well, it may be premature to answer that question in any definitive manner, all indications point to a decrease. While I think “Crash” is too firm a word, given the fact we have enjoyed so much growth over the last several years, I think a “correction” is more in order. The greatest concern will be for those that bought on speculative analysis and for those that purchased property (rental) that does not cash flow.

Now would be a good time to address the two issues above – before it impacts any short or long term objectives you may have.