It seems that every time you turn on the news you hear about the how bad the housing market is and if you are not in the business I would assume it could scare the pans off you. I would like to give you a first hand look at what's hot and what's not.
Let's start off with "What's Hot". All entry level homes are definitely hot right now as well as the foreclosure properties. Why entry level homes? Simply put the availability of government loans coupled with historic low interest rates and topped off with a $8,000 First Time Home Buyers Credit is bring buyers out of the wood work.
That tax credit is not just for first time buyers. You can qualify if you have not owned a home in the past 3 years. I just saw a poster up at Huntington Bank today and it said nothing about what it takes to qualify for the credit. For details visit http://www.federalhousingtaxcredit.com.
Also many investors are out looking at rental properties in the Traverse City area. Most of them are focused on REO (Bank owned properties) or those that are "short sales". A short sale is any sale which requires the lender to take less than the balance owing. Short Sales generally take place prior to a foreclosure.
REO properties are holding the market down because the banks want to sell their homes...now. It is not an emotional decision for them. They list the homes and if they don't sell they lower the price on a regular basis until they do sell. It is simple math for them. Most sellers don't have the luxury (or equity) to do that.
As for "What's Not" Selling. That is simple... vacant land and new construction. The vacant land market is saturated at this time. It is due to very few new homes being built and the low prices of existing homes. Fortunately I have had good success in both this year but the overall market is way down.
Few if any builders are taking a risk and building a home on speculation (a vary common sight in years past). Banks are tightening up on credit and now require 25% down payment in the cost of the total project. They used to use the appraised value or build cost, whichever was higher.
If you are in the market for vacant land you are in luck because the sky is the limit. Waterfront lots are much more affordable then they have been in 5 years. IF I were in the market I'd buy now. Feel free to contact me with assistance in buying or selling property in the Traverse City area. I can be reached at 231-218-5199.
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