Does the subprime collapse mean the sky is falling?
By Karen Scopetski
With all the recent news that we have been seeing and hearing on the TV and radio and reading in the papers, you would think that the sky is falling. Did Chicken Little have it right?

Karen Scopetski Your Hometown Realtor

Probably not. Almost all the data that we continue to see is historic and national. The subprime collapse is not going to lead to a catastrophic downfall in Metrowest Boston. Some lenders who were fraudulent in California and Michigan are not going to be the cor- nerstone to a huge collapse of the largest pool of assets in the world. The stock market corrected from its highs last week by 10 percent and it was just an article in the paper. Meanwhile the national and local media is slamming home the notion that our real estate market is teetering on outright bankruptcy.

This couldn't be further from the truth. Yes, prices are depressed a little. But now the first-time home buyer (who is the heart and blood of the real estate market) has a better opportunity to buy today than anytime in the last three years. Rates are very low (6.375 percent and lower) for a 30-year fixed-rate mortgage and the purchase prices are lower than the past three to five years. It is like getting a second chance at buying that great stock that you missed out on a few years ago.

As for the move-up buyers, they may sell at 5 percent off of where they were last year, but they are buying at 5 percent off what the values were a few years ago. It's all fine when the facts are visited and looked at.

The papers, radio and TV will continue to pound the real estate pavement because people love to hear about misery and, as they say, misery loves company. It sells papers and it pays the bills. We are days away from coming out of the Labor Day vacation and with kids back to school and people back to work, there is almost certainly a market pressure that will occur as buyers recognize value and buy their next home before rates and prices go up next spring. Remember, next year is an election year and all parties will try to inflate the economy and anything that is good for the economy is generally always bad for rates.

Let me assist you with all your real estate needs … I am committed to serving the community with honesty and integrity and providing service that will exceed your expectations!

I have a proven track record and know the real estate in your neighborhood. For more information, call Karen Scopetski at 508- 393-4442, 318 Main St., Northborough, www.KarenScopetski. com.

Scott King Nemoves Mortgage 508-317-2927 SKing@ nemoves.com