With the new stimulus bill having been signed into law what effect is it likely to have on our home prices in Tredyffrin Easttown School district? Many agents are seeing increased activity among first time home buyers throughout the country and this is reflected locally as well. This being a more built up area our first time home buyers find it harder to afford homes in this district but Chesterbrook, Drummers Lane, Old Forge Crossing and Devon Green offer good alternatives for many first time buyers looking for smaller homes and willing to live in condo or home owner association developments with alternatives of one, two or three bedroom homes. There are also several twins and smaller single family homes available as well.
What needs to be realized is that many banks have tightened their qualifications and this is causing many to believe that they cannot obtain financing. Many buyers are challenged finding finance, but there are several different alternatives including FHA loans that require only 3.5% for down payments and closing costs can be paid through a sellers assist as well. Feel free to contact us to find help, we have lots of sources for finance, including loans that will alow you to do repairs and renovations where necessary.
So as these first time buyers find homes and make purchases this will filter through the market allowing sellers who need to sell first to move up. This may take time to filter through but it will eventually happen.
So how is this going to affect home prices? Currently the financial stress has caused prices to drop in some areas of the school district by as much as 25-30% over 2007 prices and sometimes even 2005 prices. We have seen many homes selling for less than they sold as far back as 2005. Prices have dropped, this will slowly stabalize that drop and many believe that we are close to bottom but prices will not rise for probably the next two years at least. What is important for the banks to maintain and even increase their lending. Whilst their criteria was very loose for several years now these criteria are too tight choking finance, as confidence returns these criteria will improve allowing funds to flow.
What about foreclosures? Our area has been relatively free of foreclosures, but this does not mean that there are not distressed sales in our area that have also affected prices in general and affect buyers attitude as well. As buyers begin to realize that there are less foreclosures in our area they are more prepared to move ahead. But whilst local companies have not been laying off large numbers of staff there has been some cutting back and this has created a nervousness among buyers who are holding back from purchasing a home out of fear of the future. So once again we need to see buyer and consumer confidence to rise for us to see consumers purchasing homes, removing excess inventory and prices rise as inventory drops.
For information on a specific development or home contact us to get a free market analysis that covers nine or ten points in selecting a price point for your home so it will sell quickly and for as much as possible.