Nationwide the housing market is in the toilet. That is just a fact of life, but in the Lynnwood and Everett area and really most of the greater Seattle region. Things are still moving along. Granted they aren't moving at the frantic pace of two years ago, but there are still buyers out there looking for homes. Now if we just had loans to give them things would be fine.
Currently I'm working with several clients that have good credit, and as is typical these days, enough money to cover their closing costs but not a lot left over for down payment. The hard part now is finding them loans. Between financial institutions closing, and simply doing away with low and no down loan programs, especially the no-doc and low-doc loans, things have gotten difficult.
To make things even more interesting, the companies providing mortgage insurance have tightened their requirements as well. It is all fine and good for the government to allow Fannie Mae and Freddie Mac to purchase more loans, but if the lenders are cherry picking for buyers with 750 plus credit scores and 20% down, they are going to pull the market to a standstill.
It will be interesting to see over the coming months, which lenders decide to get back into the loan business again. Right now it feels more like they would rather not do any loans for fear of doing a bad loan. Eventually though, they will have to open up loan programs, because if they don't make loans they don't make money! All in all it should be a very interesting year.
Cliff - Real Estate Agent and Loan Officer
Accredited Buyers Representative and Residential Real Estate Specialist Serving:
Lynnwood, Bothell, Mill Creek, Seattle, Bellevue, Marysville, Mountlake Terrace, Edmonds, Everett, Snohomish, Kirkland and the surrounding areas!
Call me with any of your real estate questions at 425-773-3149 or email me at Jacquie@jacquiecliff.com anytime!