Someone once told me that real estate and the stock market were much like a seesaw. When the stock market goes down, real estate goes up and vice versa. There is still too much inventory and not enough buyers in this real estate market to allow for price increases.
We do not qualify as a county or a state with a shortage of available real estate, but the fact is, there continues to be an increase in the volume of sales of existing homes and fewer homes are coming on the market each month. So the supply is dwindling due to fewer homes coming on the market each month combined with the increase in the number of homes closing.
Therefore, the dynamics of the seesaw effect are in a way, working to the benefit of the real estate market!
It is still imperative that if you are a seller, you must price your home correctly and market it properly, in order to sell in today's market. If you are a buyer, it is imperative that you secure preliminary loan approval before contracting on your home purchase. The buyer has a great selection to choose from and a great interest rate can be secured from lenders.
Homeowners facing foreclosure or short sales, hopefully, will see light at the end of this dark and gloomy economic tunnel as the government enacts programs of assistance with lenders to lower rates or payments to rescue those who have fallen behind in payments. This is the time for homeowners in trouble to communicate with their lenders and stay abreast of programs soon to be available for homeowner assistance.
Lenders are strict for new loans. The "jumbo" loan programs are often requiring more than 20 percent down payment. For loans higher than $2 million, lenders are offering 75 percent financing and a five-year fixed rate amortized for 30 years but adjusting or ballooning at the end of five years. The conservative changes in this luxury home market show that lenders are not willing to keep a large loan (over $2 million) for a 30 year fixed rate in their portfolio of loans. The conforming loans with 20 percent down require excellent credit and verification of job stability.
Still the FHA and VA loans continue to be the most popular in the state of Florida with minimal or "no" down payment. Motivated sellers are will to pay buyer's closing costs to secure this type of financing.
The problems in the economy have some silver linings -- not a lot of silver but a glimmer of hope for the future!
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