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Since Dewey Beach home interest rates continue to play such a leading role for buyers in today’s real estate market, any relevant news items bear watching. For quite a while, home interest rates in Dewey Beach have cooperated nicely, dwelling at tantalizingly low levels. It’s been helpful to sellers and buyers alike.
Meanwhile, some strange headlines about European home interest rates have been appearing from time to time. They never seemed to make much sense, but it’s Europe, after all—and we have our hands full trying to clarify our own economics right here on this side of the Atlantic.
Yet there are some headlines you just can’t ignore. Late last month, this one appeared in Yahoo Finance:
“NEGATIVE MORTGAGE RATES IN DENMARK”
After pausing to be certain the item wasn’t under an April Fool’s dateline (it wasn’t), further examination didn’t dispel the feeling that someone at Yahoo had spent too much time reading Alice in Wonderland. The article said that bank interest rates had declined so far that home interest rates in at least one country had now fallen below zero.
In other words, through the looking glass.
Now, before leaping to the conclusion that home buyers in Denmark would therefore expect banks to pay them every month, this seemed to be the point at which bringing a little common sense would be called for!
That, according to Yahoo, is exactly what’s going on in Denmark.
Since we’ve all been hoodwinked by silly news items on the web, here is where it was clearly time to check out other authoritative sites. A respected European blogger named Jan Oravec stated in no uncertain terms, “Many economists consider negative interest rates impossible.” But reading further, Oravec admitted that nonetheless they do exist.
Per Market Realist: “In Germany, Switzerland, Ireland, Belgium, and [you guessed it] Denmark, it was about time we saw negative mortgage rates in Europe as well.”
Bloomberg Business quoted Danish Business Minister Henrik Larsen: “There’s a need for us to create clarity over how we can best handle this situation going forward” (that seems to be something of an understatement).
Yahoo got specific: "Nordea Bank’s IT systems need to be reprogrammed as it’s not accustomed to situations where the bank isn’t receiving interest payments on outstanding mortgages.”
According to a Google translation of blogger gjohnsit, banks there “have had to pay interest back instead of charging them.” Reading our minds, he asks, “How is it possible, that someone could go to a bank, take out a mortgage, and expect the bank to give them money every month?”
The answer, according to economists, is Euro deflation (but then again, wasn’t it economists who considered negative interest rates to be impossible?)…
We might be tempted to wish for the same situation for our own Dewey Beach home interest rates, but I don’t know. There is an aura of something-for-nothing hovering over the whole idea. Besides, today’s mortgage rates are already quite reasonable—and a solid reason to give me a call!
When you go house hunting in Delaware, you’re likely to share a lot of the same basic assumptions that most everybody does. Whether you have a lengthy list of hard-and-fast requirements or are in more of a “just seeing what’s out there” mindset, you’re probably assuming that you’ll “know it when you see it.” That’s not necessarily true—for a couple of logical reasons.
First off, unless price is literally no object, your budget will dictate the segment of current Delaware listings that your house hunting will include. Among those candidate properties, it’s unlikely that all of them share the same features—the same positives and less-than-positives. You may find that you really get a great feeling about one home, only upon reflection to realize that some of its drawbacks are serious enough to eliminate it from contention. Likewise, another home that provided a so-so first impression could wind up seriously in the running if it rings up the best collection of strong points.
Then, there’s always the unexpected. A good example was the couple who were fairly sophisticated when it came to house hunting experience. They had enough home ownership history to have developed clear ideas about what they wanted: 3 or 4 bedrooms, a yard that was large enough to accommodate a moderate vegetable garden and the family dog (but not so large that maintenance would become an issue). The only absolute caveats were that it could not be so close to a busy thoroughfare that auto noises would be an annoyance; and that if there were a swimming pool, it could not be an indoor one. NOT! The husband had experience with taking care of pools, and would not countenance dealing with a steamy, chlorine-smelling indoor pool. Period.
Those were simple enough requirements. None would eliminate a good sampling of the listings that were available at the time, so the house hunting proceeded. After nixing the usual number that left too much to be desired, there wound up being a handful of attractive candidate properties. In the end, there were two that rated a couple of return visits. Although neither could have been called the couples’ perfect dream houses, they were close to a final decision. Just then a new house came onto the market. It was slightly more expensive (and larger) than the others, but with positively beautiful yards, front and back, and (you guessed it!)…an indoor pool.
To bring the story to its inevitable end, they’ve lived in that house for years. The indoor pool had special air-moving equipment that erased the humidity and left no chlorine smell whatever. The husband says it is by far the easiest pool he’s ever dealt with. The garden is just what his wife was hoping for. It turns out to be their dream house.
The moral of the story is that there’s a lot to say for keeping a balance between having an organized approach to your house hunting and keeping an open mind. To which I have to add that I hope you’ll give me a call when it comes time for your own Delaware house hunting! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.