The Real Estate Avenue: January 2015

Rewind back a few years ago and you may be able to recall the beginning of the housing crash. Sellers where unable to pay off there mortgages because they owed more than the home was worth. Foreclosures were unfortunately very prevalent in almost every community you visited. Lengthy short sales with there grueling paperwork and bank demands were a popular alternative. The housing market was a very grim place the last few years if you were trying to sell your home. The mere thought of putting a home on market for some sellers was just to painful to think about. Many of us could understand there pain.

Although the drop in home values made it very hard on sellers there was one group that benefited greatly. Savvy buyers who were able to capitalize on the housing downfall. As a Realtor working in the field I was able to see first hand the deals that many buyers were getting on there home purchase. Homes that were once valued at 250,000 may have been sold at 175k or less depending on the current appraisal values. Programs such as the NSP program or other revitalization programs were actively helping buyers purchase more affordable properties. These homes were sold at a great price and were even refurbished. HUD homes added to buyers receiving homes at a great price by only requiring 100.00 down on FHA loans. It has been a wonderful time for buyers.

Fast Forward eight years and the market has begun to see change once again. The amazing deals that were everywhere have begun to dry up. Builders are coming back and although the homes are beautiful they are a far cry from the prices we were seeing. Sellers no longer have to take the first low ball offer that comes along. They are now in a position to pick and choose. The new language for banks and sellers alike seems to be (highest and best). For those of you that have been in the housing market recently you know exactly what that means. Makes most buyers cringe just reading the words.

The predictions on
More houses will flood the market
Interest rate will Increase and will be closer to 5% by the end of the year on a 30 year fixed
Home prices have to cool off to much to fast may work against the recovery market