With 2007 now coming to a end, we all know the roller coaster ride we had in 2007 and now we prepare for 2008 and obstacles do we have to face in 2008.
My take on Inventory: The way I see this market is pretty simple, there is a housing market flooded with inventory which is no secret, most of the houses on the market are over priced and the ones that are priced fairly are still selling. The sellers who are over priced are causing the market negative news which put's fare in buyers minds that real estate is not selling but we all know when priced fairly the house does sell and sell quickly. The sellers who are over priced are those who have bought a house in the past 2-3 years and bought over listing price and need to get more money to break even or sellers who think the housing bidding war of 2-3 years ago is still active. So far no news flash here....
I feel that Real Estate Agents are contributing to the slow market....Agents who look at a home and are afraid to tell the seller(s) that what the seller(s) expect for a price is unreasonable, these agents will take the listing just to have a listing. This not only does not make any sense but contributes to the numbers and puts more non selling homes on the market. Why would anyone want a listing to just have a listing when it's over priced? Do you really think you are going to sell that house? Do you really think you will get flooded with buyer leads and hope to sell those buyers another home? or do you think that having a listing will make you look like a real estate super star? "look at me, I have 10 listings" (none selling but you have 10). Taking overpriced listings is hurting you and everyone else in the real estate business. I am sure agents will flip some type of take on why to take a overpriced listings and we can debate that over and over but simply it's bad business. Why would I want 10 mortgage applications? Just to say I have 10 applications? That's great but I don't get paid on applications I get paid on closed loans! - Stop taking listings that will not sell! Help the industry shrink the inventory pool.
First Time Home Buyers in Control in 2008: We all know there are tons of homes that are overpriced and are not selling which will allow First Time Home Buyers to control the 2008 market. First Time Home Buyers are in control so why shouldn't they take advantage of it!. First time home buyers know that the inventory is high and they can shop to get a great deal. First Time Home Buyers don't have a home to sell so they are buyers who can buy NOW!, they control the market. If a current home owner wants to buy a home they need to first sell their home which can be difficult if they need to get a price that is too high and have no room to play on the selling price. This again is a the reason first time home buyers will dominate the house buying market in 2008. First time home buyers should BUY and BUY now while rates are low, inventory is high and great deals can be negotiated
This is not to say that people who are sellers now won't sell but the that market is slimmer and more difficult than working with someone that has no strings of selling a home.
Those who have a home to sell and are over priced will sit on that home and sit on it until they realize they are overpriced or finally take their home off the market which will help everyone.When the inventory shrinks the supply shrinks and demand will help sell homes.
The focus in 2008 will be on First Time Home Buyers which will help fuel sales of existing homes and allow those existing sellers to buy a home thus helping the entire cycle.
Best of luck in 2008
Leo Namiot
Benchmark Mortgage - Connecticut
http://www.leolends.com/
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I agree with you...This is a "great market" for the first time home buyer!
Patricia Aulson/Hampton NH Real Estate www.patricia4realestate.com Seacoast NH/ME Real Estate