Sunday, April 22, 2012

Buyer or Seller Market?


How’s the Market?

How to make sense of the current market for would-be home buyers and sellers?  The following trends seem to be in play:

  1. A generally soft market for home sales has brought qualified buyers to the fore, increasing not only the number of sales but price levels in desirable areas.  Although bank-owned properties are still numerous, these are not usually in prime neighborhoods in terms of general condition physically and economically.
  2. The pressure of qualified buyers on the mortgage market could result in higher interest rates, thus more difficult qualification ratios, as the year goes on.
  3. Due to litigation that erupted from feeding-frenzy sales prior to 2007, buyers and their lenders are insisting on tighter contingencies, especially regarding inspections.
  4. Loans that “adjust” are still available but harder to come by, making it more advisable for buyers to invest in homes they plan to stay in for at least 3-5 years.


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