Charlotte's Ballantyne Resort
What usually happens when there is a spike in home mortgage rates, may just be happening. Buyer activity is beginning to show signs of improvement, and not just for short sale or foreclosure targets.
I am using my own daughter and son-in-law's home for example, which has been on the market since last March, right befroe I got diagnosed with cancer. It was forever before we got the first showing, and I am confident in the price we brought it to market with. We reduced the list price once, modestly in the fall, and got no real increase in showings
As you may remember however, the nation also suffered with an over 10% unemployment rate, the way the government figures it....closer to 18% for the total out of work. The unemployment figures are derived from those seeking unemployment compensation, and does not consider any longer those that quit looking and went off unemployment benefits.
Now we still have a very high unemployment number that remains a thorn in the side of home sales, and it is going to be, I believe, the predominant economic factor of any recovery we have in real estate. If there is any silver lining in this cloud immediately, it is that the increase in mortgage rates, which we have not experienced in many months, will prod those that want to move, can qualify for the necessary financing, and not driven by the investor mentality, into moving ahead with their next home purchase.
Getting back to my daughter's home...we had three showings in the last 10 days, and one of those was a second look by that agent and buyer. This has followed a long dry spell, not just on their property, but the entire area in which they live.
The recovery, is going to be a lenghty one, when it begins. Maybe, just maybe, this is an idication of moving finally in the right direction.
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