There has been a lot of bad press over the past year about real estate values declining, home loans being hard to get and foreclosure troubles with homeowners and lenders. I have to admit it’s a very challenging time in the mortgage lending business. In times of trouble there are also opportunities that present themselves and this market is certainly presenting some outstanding opportunities for luxury home buyers in Oakland County, Michigan.
• Great opportunities for buyers
I have seen some luxury homes transact at prices not seen in the past few years. It’s my opinion that we are at or near the bottom of this market and buyers are starting to realize this, so recently we’ve witnessed an increase in activity. Remember the old adage of “buy low, sell high.”
• Oakland County, MI still a highly desirable location
Recently www.Luxist.com rated the most expensive zip codes across the nation. Bloomfield Hills, MI was No. 6 in the Midwest Region with a median home price of $1,180,000. Remember the old adage of “Location, location, location.”
• Real Estate Values have Trended Higher
Luxist also reported that values have risen 113% in 48304 since 1990. Even with the recent downturn in values real estate has been a good investment with values climbing an average of almost 7% over the past 17 years!
• Jumbo Home Loans are Alive and Well
There have been a lot of rumors floating about which claim that jumbo loans are no longer available. That simply is not true. What is true is that the secondary market for jumbo loans has become a lot more conservative and that has impacted rates on some products. Many lenders are not able to offer competitive rates on jumbo loans right now and there are some really wide variations in rates for the same type of loan from different lenders. However, there are still some great rates out there. For instance, Oxford Financial is currently offering a 7 Year Arm with a rate of 5.875% and it’s possible to borrow up to $2,000,000 with a 70% loan to value! Like everything else, it pays to have the right contacts.