D.C. Metro market

By
Mortgage and Lending with OneVoice Communications
Wow is this an unusual cycle. House prices are bordering on affordable again, rates are low and yet sales are still sluggish.  I think the problem is too much information.  What I mean is all of the so called prognosticators are releasing conflicting reports. House prices are down, consumer confidence is down, new home starts are down, but the dow is doing great, rates are very low and the Fed likes the slowing economy.  To most consumers this is a lot of information to process and could be causing the market to stay slow.  I believe a lot of these consumers still believe rates will go down into the low 5's but thats unlikely.  I believe the second problem is there are too many wanna be realtors listing houses but don't know how to close the deal. Finally all the reports on these chop shop lenders pushing there option ARMS and bankrupting consumers is causing clients to wait perhaps extra 6 months to a year to make a move on a home.  What we need is some good reports on the positive lenders and realtors who are making a difference in their community and start a new buzz. Unfortunately a newsreporter friend of mine told me the only news that sells is negative, what a perverse society we live in.  Lets continue the Buzz here and add as many positive new blogs as possible and help spread the good housing market cheer.

Comments (1)

Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Media reports about prices going down (when they are actually just list prices) and undervalued/overvalued reports that use only one economic condition (such as wages) are so BOGUS!  Buyers are sitting on the sidelines waiting for it to bottom out.  I agree with you, rates are so low that if you are in for the long term hold, now is a good time!

Fewer residential building permits are not necessarily a bad thing either!  Our local newspaper spins it as such.  I look at it as inventory reduction - major inventory reduction here - so prices can start going up again rather than staying stagnant.

It all reminds me of Don Henley's song "Dirty Laundry":  Kick em when they're up, kick em when they're down!

Dec 05, 2006 02:30 AM