Lending is tight and that is making it tough on the first time home buyers facing higher prices and onery lenders. The robust activity in 2013 and 14 on the entry level homes has in fact provided a nudge up for the middle market sellers. Top of the line properties are seeing some much needed sales as well.
The fly in the ointment is this tight lending situation. Regulators had a field day after the crash in '09 and that is having a negative impact on the market as buyers find difficult guidelines and tougher mandates to get a loan processed and funded. Although many of the changes to the banking regulatory and lending practices have had positive results, in typical government fashion they have gone over board and may lead to worsening conditions.
Let's hope not. Buyers are well advised to act swiftly when the see a house they like and if it looks like a sharp price, it probably is. Don't try to haggle the seller down, he probably has three offers to look at. There are still some sellers that have overpriced listings and these sellers will find the market to be cruel. Buyers will bid up good values but they won't bit on that hydrogen filled, puffed up price that some sellers think they can float into the market.
Things are good out there folks, but things are tight also. You may want to get while the getting is good, as they say.
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