As buyer’s continue to outbid each other for homes and many sellers sit on the sidelines, not wanting to put their homes on the market fearing it’s the bottom; Realtors are working long hours in an effort to close transactions for their anxious clients. Most of us in the industry are bombarded daily with rules and regulations coming from the government, attempting to safeguard the consumer and investors alike.
In September, pending sales were up 6.1 percent according to the National Association of Realtors. They attribute this to the $8,000 tax credit that was due to expire on November 30th of this year. Surveys show that the tax credit has bolstered sales by 40%. A nice shot in the arm for our local market. While the tax credit was a great idea, it evidentially didn’t come with requirements to prove that you actually bought a home; leaving the door open for fraud. No surprise there.
One of the biggest challenges Realtors are facing today is appraisal issues. Banks are ultra-conservative when it comes to extending financing to a home in sub-standard condition. They’re also not anxious to say a home is worth more than the one next door, even though it may have been a distress sale or bank owned home. While the buyers and sellers are hopeful that the agreed price will be what the bank agrees is the current value, appraisers and underwriters are not getting caught up in the frenzy. They want data. Hmmm… what a concept! Unfortunately for many, this is causing the prices to continue to drop in some areas. The closed sales can only be used for 3 months. Those 3 months can go by very quickly. If you have a good comparable in your neighborhood, the appraisers will consider that sale as a comparable only for 90 days. After that, it’s old news.
Our local market has a real need for supply. If you’re thinking of selling your home, now is the time! It’s an amazing time to be a move-up buyer. You may get less for the home you’re in, but the home that you purchase will be at a bargain price. Interest rates won’t stay low for much longer. They’re at an artificially low level right now, but not expected to remain there indefinitely.
Thinking of buying your first home? It’s a good time for you, too! Last, but certainly not least, if you’re in trouble with your current mortgage or know someone who is, have them call me. I’m happy to point them in the right direction. Laws were recently passed that make it a crime to pay someone in advance to assist in loan modifications! Beware of fraud. It’s these types of markets that people are easily taken advantage of.
The tax credit is being extended. The details are due out soon. This version is predicted to include a credit for buyers who are not first timers. For more information on our local market, tax credit details, market statistics, or if you’d just like to voice your opinion ~ don’t hesitate to call or drop me a note. I’m happy to be of service to you and anyone you know who needs a hard working Realtor!
All the best ~ Carol