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And yes, it's spring. It's warming up, things are greening up, pollen is coming on strong, and RE agents are confusing the normal spring uptick with a recovery.
I was talking to the guy who power washes my house and he said that a lot of RE agents he used to do work for have dropped out of the business. I guess with fewer agents there’s more sales left for those who weather the storm.
I suppose it depends on the sales price of the homes that have sold. Maybe the $200k market is hot, but I know that in my neighborhood there are 6 homes for sale, and 3 have been on the market for over 4 months and it seems like a 'race to the bottom' the way they have been matching price reductions. One has to feel sorry for the sellers in this market with the stress they have to endure and the losses they will suffer. All the homes are presented excellently and other than a very poor market there is no reason why they haven't sold.
2 things pop into my mind.
1. people are realizing they don't need McMansions, they need average homes. Obviously the market is flooded with them and there is less demand.
2. Banks are being stingy.It's tougher to get loans. Truth is that selling a loan at a low interest rate is a ****ty investment. There is no motivation for the bank to own that loan. It will probably cost them more in maintenance and risk, than they will get in return. They're better off investing their money elsewhere.
I suppose it depends on the sales price of the homes that have sold. Maybe the $200k market is hot, but I know that in my neighborhood there are 6 homes for sale, and 3 have been on the market for over 4 months and it seems like a 'race to the bottom' the way they have been matching price reductions. One has to feel sorry for the sellers in this market with the stress they have to endure and the losses they will suffer. All the homes are presented excellently and other than a very poor market there is no reason why they haven't sold.
Agreed. The 500 and up market seems to be hurting... the ones above 800 are really in a sling because even with 30% down, they're still not in jumbo range.
I agree with your sentiments and it probably won't change anytime soon whilst the banks are ultra cautious on lending criteria - but people have short memories and in 5 years time it will be business as usual.
Quote:
Originally Posted by boardjnky4
2 things pop into my mind.
1. people are realizing they don't need McMansions, they need average homes. Obviously the market is flooded with them and there is less demand.
2. Banks are being stingy.It's tougher to get loans. Truth is that selling a loan at a low interest rate is a ****ty investment. There is no motivation for the bank to own that loan. It will probably cost them more in maintenance and risk, than they will get in return. They're better off investing their money elsewhere.
Man if this is the best it really must suck everywhere else.
Not to come across as rude but have you been paying attention the past 4 years? I have a close friend in FL whose purchased in '06 for $330K, comps reached as high as $370K the following year however he just had it appraised 5 months ago at $185K. A family members home in New England was valued at $380K in '07, he put it on the market last year for $260K and has been reduced to $225K without any offers yet.
My point is, the real estate market is phenomenal in this area when compared to other parts of our country.
Not to come across as rude but have you been paying attention the past 4 years? I have a close friend in FL whose purchased in '06 for $330K, comps reached as high as $370K the following year however he just had it appraised 5 months ago at $185K. A family members home in New England was valued at $380K in '07, he put it on the market last year for $260K and has been reduced to $225K without any offers yet.
My point is, the real estate market is phenomenal in this area when compared to other parts of our country.
Yeah, I know how bad it is other places, there is just not a smiley that I thought accuretely conveyed my sarcasm.
However, on the flip side, those places also had much larger, probably aritificial, gains than we ever did here.
Yeah, I know how bad it is other places, there is just not a smiley that I thought accuretely conveyed my sarcasm.
However, on the flip side, those places also had much larger, probably aritificial, gains than we ever did here.
Your second statement is very true. As for your first sentence....point taken. I usually go with the rolling eyes but couldn't find it.
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