Hot on the heels of the Fed’s inter-session rate cut of 75 basis points last week, they cut the rates again today, as they perceive we are most likely on the brink of a recession as they look to stem the tide in the face of a weak economy.

The real beneficiaries from these cuts are mortgage holders whose loans are directly tied to the Prime Rate, as they will see a benefit immediately. HELOCs (Home Equity Lines of Credit), as well of variable rate charge cards will see an interest rate reduction with their next statements.

The interesting thing is that even though long-term rates are at the lowest point in years (2005), it is extremely possible that these rates could actually rise if you look at historical performance and recent trends. The key is that if you are waiting for rates to fall further don’t! Go get your application in now with your bank or mortgage broker to lock in the low rate available.  

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The tourists, as well as the ‘snow birds’ are back as we head into full-blown season in Southwest Florida. How do I know, well for one my buddy who owns a body shop is busier than he has been in months and second, my open houses have suddenly become very busy, which is a good sign.

Buyers are certainly back looking as they perceive that there are bargains to be had in the greater Naples Real Estate Market, and yet the question becomes are they actually buying? Certainly in some instances they are, but I’m hearing the same story from a lot of fellow realtors that people are continuing to try and time the market.

I have been telling clients and prospects for months that trying to time the real estate market is no different than trying to time the stock market, and if you happen to hit it, you are just plain lucky. And is there really any reason to try and time it anyway, after all, you aren’t buying for the short term.

While you are hanging around on the fence, waiting for the market to drop another point or two, you are loosing true bargains that are out there that are being snapped up by other savvy buyers. The North American buyer who remains ambivalent about the market needs to realize that they are in direct competition with the European buyer whose money is worth far more than ours and sees greater Naples Real Estate as a true bargain now not worrying about whether the market will go a bit lower!  

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