What does this down turn in the economy mean for the local housing market?
So as I sit at home every evening and watch the news saying that the country is possibly heading for a second recession, one thought goes through my head “Here we go again”.
For the past 3 years our local market has a roller coaster of activity up, down, down, down, up, down! The Little Rock Metropolitan area which includes: Benton, Bryant, Little Rock, North Little Rock, Maumelle, Mayflower, Conway, Cabot, Jacksonville.
What is going on currently…. Well in talking with my trusted lenders 3 weeks ago they had files stacked high on their desk and were happy as can be with all the refinances and new loans coming into the banks. As of last week when I stopped by to say hello to them, I could actually see their desk. I was told that the flow of people wanting to refinance and get a new mortgage slowed to a trickle.
As YourExitRealtor I ask myself what is stopping people from buying homes. That is one of the easiest things to answer. In fact I have multiple answers.
1. Lack of Job security.
2. What is the market going to do in the future.
3. Lack of credit.
4. Banks have tightened their lending requirements.
And these are all very legitimate issues. In fact many Realtors in our area are probably feeling the same thing when it comes to Job Security! I know I have watched my business drop a little. I will be the first to admit that the future of the Real Estate business is a scary thought if I just concentrate on next year, but I am here for the BIG Picture.
And in the BIG PICTURE here is the Reason I think people that can afford to buy a home should highly consider it.
1. Interest Rates are BELOW 4%
2. Sellers are more negotiable on price.
3. There is plenty of inventory out there. (BUYERS MARKET)
4. IT IS CHEAPER TO BUY THAN TO RENT…. (Email me I will show you)
So there it is. YourExitRealtor’s assessment of the local real estate market. Some may agree or even disagree, but I can tell you one thing for certain. The National News does not completely reflect the Local Trends.
Here are some STATISTICS for the Past 3 years for the Little Rock Metropolitan Real Estate Market.
Year 2009 2010 2011
YTD Sales (Jan 1 – Sept 23) 4448 4400 3955
Avg List Price $162,000 163,000 166,000
Avg Price Sold $156,000 158,000 159,000
Avg. Days on Market 77 69 90
If you have any questions about buying or selling a home please don’t hesitate to go to www.yourexitrealtor.com and email me. I am here to help you in any way possible.
It is my belief that the market will turn around in the future. The only question is how long? My gut feeling is 2 years we will start seeing an improvement across the board. But if you can afford to buy a home, you will get an amazing interest rate and a great deal on a home in this current market. Investors are buying houses left and right, because they know they are getting good deals. Don't let all the great deals and interest rates pass you by.