The other day I walked past a news stand and there I saw a copy of U.S. News & World Report with a big cover article about the changing housing market and what you can do to make money, or not lose money if you’ve recently bought, etc. This is a fairly well respected magazine (well, at least, it’s not People!) so I figured huh, maybe I’ll pick up some insights.
What did I learn? I learned I should have kept the $3.50 in my pocket. They used up a good dozen, glossy pages to tell you the same thing I told you a few posts back: buy as low as you can, and plan to hold onto the property for a while – that it’s difficult to do a fast flip these days. They also said that if your short-term fixed rate is starting to float a lot, that you should refinance – what insight!
In all fairness, though, they did provide one bit of interesting information. Well, maybe a couple. They did rate Salinas, California as one of the most over-valued markets in the country (67% overvalued, something like that – not sure how they measured it)…and little ol’ Santa Cruz-Watsonville, California had the third highest percentage of 100% interest-only loans – something like 47% of homes sold last year were purchased with this form of financing.