Housing industry starts to thaw in the heat of a stabilizing market.

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Mortgage and Lending with Movement Mortgage NMLS # 536153

It's been a while since headlines have leaned in a gracious manner towards the housing industry.  Texas has earned a spot in the top 5 places to purchase per an article on CNN Money.  Good news to the local DFW market and an indicator of things to come.

Surprisingly, the news is flooded with above projection reports in multiple levels of housing.  Rates are not just good, they are spectacular.  Existing home sales were above projections and inventory declining.  5 of the major home builders are aggressively taking new market share as competition has been eliminated over the last 18 months. 

The question is have we finally hit the bottom of the financial crisis?  Concern has to be shown toward the availability of funds to those who want to secure financing.  Unfortunately lenders have raised credit restrictions in the last 30 days.  This piece could be the dampening of the flame which is thawing the housing industry.  As incremental credit qualifications are added, it impacts a large number of potential home buyers.  Mostly the first time home buyer.  It's not without reason these restrictions are taking place, but a visionary stance shows promise to the lenders that have tightened, but not bound their first time home buyers.

Spring and summer of 09 should be strong as contracts are being stacked on the short sale market.  Lenders need to be keeping an eye on staffing as most have reduced headcount due to lower application volume.  The tell tale signs are there, 45-60 day closing times are evident industry wide.

Is it possible to be passive-aggressive in today's environment?  Answer has to be yes.  Secure market share while others are still watching the ice melt and the summer will be very, very hot.

Link to CNN Money article : http://money.cnn.com/galleries/2009/real_estate/0903/gallery.Defying_the_slowdown/index.html?section=money_realestate

 

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