In a report out of Washington, NAR, The National Association of Realtors®, is suggesting the the conditions in the mortgage market are improving. They believe this will stimulate pent-up demand early next year.
Quoting from Lawrence Yun, NAR senior economist…
“Conforming loans are abundantly available at historically favorable mortgage rates. Pricing has steadily improved on jumbo mortgages since the August credit crunch, and FHA loans are replacing subprime mortgages and bad credit loans for you.”
These are positive remarks that help put the market in perspective. Here in Naples, the prices have dropped considerably in response to buyer demands. They are now hovering around 2004 pricing and in some cases 2003 prices. For sellers who are playing hardball and want to hold to their price, they need to ask themselves if someone offered them a $20 dollar bill today would they take it or would they wait to get $25 next year. Carrying costs, taxes, insurance are eating away at these sellers every month that goes by. Interested buyers are forcing the issue and getting great deals for themselves while the inventory offers a great selection of properties.
“A cutback in housing construction is a positvie sign for the market because it will help lower inventory and firm up home prices,” Yum said.
A lot of people are waiting on the sidelines for the herd to move. The problem with the herd mentality is that once the herd finally decides to move, they’ve missed the bottom and the possibility of an immediate gain in appreciation.
The word is that investors are grouping their funds together to re-enter the market and gobble up the best deals. Once the word gets out on this market action…then the others will follow. The facts are that 2007 will be the fifth highest year on record for existing-home sales. People are still buying homes and in the process getting some great deals.
If you need someone to find these deals for you, call Ruth Bethem, ABR, CRS, GRI, in Naples toll-free at 877-777-7545 or visit her Naples real estate website.