Unforturnately for me I changed careers right at the beginning of the turn in the real estate market. Although prices of real estate on the Outer Banks are lower than they have been for years, why aren't Buyers more movtivated to BUY?
Why do you think that Buyers are NOT buying? HELP!
check out my blog- they are buying- look at your local inventory and sales you can get an idea as to how much inventory is available, the rule in a normal market is six months.
Sharkey
There have been a lot of buyers taken out of the market due to more stringent practices of underwriters. You can't expect to get a 100% ltv loan right now. I think the lowest downpayment I have heard about is 5%. So try to have your clients go FHA if the hous is within the range. they will have to come up with around 2% and FHA will allow a 3% contribution from the seller!
It is a good market for buyers that qualify!
Rob
They arent buying because lenders have made it more difficult for buyers to obtain credit. The only way this market turns around is after prices drop dramatically, lenders relax it's lending policies and foreign investors come in to load up. The falling dollar is one of the main reasons why the market has crashed and dont look for it to recover until 2012--2014.
I dont see a recovery before 2012, due to the saturation of unsold homes onthe market. Price will fall dramatically or we need to start a massive advertising campaign internationally especially targeting wealthy nations. And making it easier for foreigners to buy properties here in the USA.
The statistics don't look good. Of SF homes on the Outer Banks, there is 2,114 Active SF with a Median Price of $575,000 and Avg DOM 201 days, 166 SF currently Under Contract, and 839 SF have Sold for 2007 with a Median Price $377,500 and an Avg. DOM of 187 days.
The overpricing of homes that occured a few years back priced the average 2nd home buyer and first-time home investor right out of the market. Lately serious investors have not been inticed to put their investment dollars here because the numbers just didn't make sense. Now, vacation rental companies are encouraging their property owners to increase their rental rates to increase the overall market value of their properties.
With the upcoming changes, lower home prices and increased rental rates, there is still hope. I guess the key is just to weather the storm. One thing that can be said about the changes in the lending stardards is at least now, when you have a pre-approved Buyer bringing an offer to the table, the chances of the deal closing should be better.
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