Many people are asking the question, "Has the market hit bottom yet?" And the answer is, "Maybe."
This is a very odd market and it is difficult to gauge pricing and where things should be priced. Homes priced low are selling, getting multiple offers, and selling for above asking price. Certain local markets are healthier than others.
There is still a lending market for current buyers, even with 100% financing. It is not as easy to get a stated income or no doc loan as it used to be. Lenders and borrows are shying away from the more exotic loans such as option ARMS, short term fixed loans, or variable loans.
The current "mortgage crises" is with the existing mortgages. Everyone is waiting for the second waive of foreclosures. It may come and it may not. The government is working with lenders to stop many of the foreclosures. Even without government intervention this is a smart business move for lenders. (See my blog of 1/3/08 on this topic.) There is also talk of a recession, but this may lead to further rate cuts which will only help the housing market.
There are other positive signs and possibilities:
- The National Association of Realtors reports a slight increase in housing sales.
- Investors are starting to move into the market.
- If the stock market starts to decline more investment dollars may go into real estate.
- The weak dollar may draw foreign investment into the real estate market.
A final warning, a couple of years ago many people held off on selling as they did not see how the market would ever go down and they wanted to wait for prices to climb more. Well many of them are now stuck in properties they cannot afford to sell.
Now many buyers are setting on the sidelines waiting for the market to bottom out. Will they wait to long? By the time you know the bottom is here it has passed. If you want a home now is the time to buy. Get with a good Realtor and take a hard look at the market. Buy now.
Since when is very affordable housing a "housing crises?" This is a great housing market for buyers.
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