Some Communities Are Waiting For The Tide To Rise!
As we review home values in our Warren County market, it becomes pretty apparent that some communities are waiting for a rising tide. Not a literal watery tide, but the real estate recovery tide that lifts all ships homes. These communities are developments primarily built in the 2005-2009 time frame. New construction was booming, hammers were swinging and builders were turning cornfields into communities at a rapid pace.
Few people saw the market downturn coming until it was too late. The homes were theirs, mortgages signed. In some cases builders stopped in mid-development and home values were further hurt. Amenities promised? Sorry about that! Acres of bulldozed dirt, half finished streets and an uncertain future. Fortunately for most of these communities, other builders have recently acquired the lots and they're making efforts to finish the communities. Now that doesn't mean the new homes are always at the same price point, but a finished development trumps an unfinished product.
Meanwhile, homeowners have been stuck in limbo, and this doesn't apply merely to homeowners in partially finished communities, but some finished communities too. The values dropped enough that if the owner didn't make a significant down payment, they're unable to walk away without cutting a check at the closing table.
If the owner doesn't have the needed cash reserves, they've got the choices of taking a short sale credit hit, letting the bank foreclose, or continuing to wait for a return of home values that gets them out at least even on the mortgage.
So that's what we primarily see, homeowners waiting for that rising tide. Communities where people are waiting for the option of moving to the next chapter in their lives. In the meantime, the sellers are firmly tied to the Mortgage Pier with an uncertain time table for departure.
Unfortunately for today's buyers, that also means many desirable communities have no inventory for sale! Nothing to buy, because the price the seller needs, the buyer won't pay. And even if they did agree, the appraiser will be screaming "NO that price isn't supported!".
So we're hoping that tide comes in soon! Most of our market is rising, but we've still got captive communities waiting for their turn.
If you're thinking about selling your Warren County home and need to know if the tide has come in for you, please contact us for a free consultation. No hassle, no pressure.
Serving Warren County's residential real estate needs,
Liz and Bill aka BLiz
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