More Real Estate Words of Wisdom from Gerry 'Realtyman' Bourgeois:
Well... The Spring Market is upon us. What's happening in North Central MA, you ask? Nobody really knows for sure. Mortgage rates are still very low (historically) - around 6% for a 30 year fixed rate. 100% financing is all but gone. OK, 100% LTV may be available in SOME instances, however they are few and far between. FHA is making a 'comeback' but buyers still need to bring Money to the table (quite a novel concept).
Sales are actually increasing (units, that is) but there is still quite a bit of pricing pressure. Homes which are priced correctly relative to the current market (not 2004 values) can - and DO - Sell!
We are seeing more activity in the lower end of the market for single family homes. However, we are also seeing the 'upper-end' getting cherry picked. The good upper-end homes are selling. The real challenge is in the middle of the market. It is very hard for the middle to find any direction right now. Also, many who are in the middle are reluctant to make a decision.
Due to pricing in addition to financing constraints, the condo and multi-family markets are faring Far Worse than the Single Family market. And until the supply/demand curve shifts - I don't see that part of the market getting better (price wise) any time soon.
In the 18 years of selling homes in North Central MA I have yet to see a better time to 'trade up' to a "better" single family home as I do now. This is a result of the current pricing pressure combined with the low cost of mortgage money. (Remember: at 6% over 30 years - $100,000 costs only $600 per month (P&I)).
Only time will tell when we hit bottom. Unfortunatley we will only know that we have hit bottom once we are about 6 months past it. At that point, mortgage rates will most likely be higher - and the only one who wins there are the banks.
Here's to hoping that the Spring Market units continue to remain strong!
This entry hasn't been re-blogged:
Re-Blogged By Re-Blogged At
Find what you need?
See More Blog PostsAbout Real Estate! SEE MORE NOW!