Well, the low end market seems to be getting a lot of help these days. With first time homebuyers (and buyers who have not owned a home in three years) getting the $7,500 tax credit, this should significantly stabilize prices in the first time homebuyer price range. In areas like Tulsa, Broken Arrow and Bixby, I consider this price range to be $100K-$130K. The bailout bill being discussed in the Senate right now may do away with the provision that one has to pay this back at all as long as the house is held onto for at least three years. The Tulsa market has been one of the most resilient markets as it is, things are looking up for the low end market. For first time homebuyers, coupled with the lowest interest rates in years, (5.25% thirty year fixed for applicants with good credit as of 2/2/2009 per Valley National) Lynn Majors 918-524-3620, it amounts to the best time to buy a home that I have ever seen.
The higher end on the other hand, is not faring as well. In Tulsa County, one might consider the starting range to be above $271,050 for a single family home, which is the limit for FHA loans. Look at FHA.com for different counties. According to the Wall Street Journal article below, some banks are purposely pricing themselves out of the Jumbo market because they don't want to take on the risk and there is little secondary market for these loans. The problem is twofold, buyers who want to buy in this price range will find it very difficult to get a loan and have to put more money down, sellers will find it difficult to refinance and it will take them longer to sell their house.
http://online.wsj.com/article/SB123310421416822271.html
So if the low end market starts to do better and the higher end market does worse, are we making progress with housing or just running in place...
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