Other price points have not seen the surge, but it could be coming soon for a couple of reasons. The first is the obvious, as the move-up Buyer is finally able to sell they will be actively shopping. The move-up Buyer has been teased watching the prices fall on homes in their desired neighborhood, but unable to act because of the lack of activity on their home. That is changing, and they will soon be shopping.
In the past few days the terms on Jumbo loans were greatly improved. Lenders had clamped down on Jumbo loans when the debacle started because they didn’t want the risk. Rates were two or more points higher than a conventional loan, and qualifying was a nightmare. That slowed the upper end market to a crawl … one of imperceptible motion if truly analyzed. With the new terms just being announced it will take some time to see their effect on the market, but it is likely that it will create new activity after the word gets out about it. Homes that were once appraised at $1.6 million now available for under $800,000 is too much of an attraction to the qualified Buyer. The Market will be there now that reasonable financing is.
Another Market changer is the Lenders new attitude about and their responses to short sale offers of late. This is having a significant impact on the Market as it is slowing the amount of foreclosures. Short sales are better for neighborhoods as the property remains in good condition while the owner continues to reside in it. That means there will be fewer bank-owned properties dragging the values down so far and fast as they have been doing. This is a change from what we’ve experienced over the past 18 months, one we’ve been hoping would occur. The process has been enhanced by special short sale services of some escrow companies that are getting good results from their communication with the lenders, something that agents came to loathe before this attitude change.
Our Advice: It is apparent that the First Time Home Buyer Tax Credit incentive is having a positive effect in our real estate Market Place. If you qualify for that and are thinking that it might be a good idea to buy a home now … quit thinking and start doing! The Market is changing and as it gains traction the pricing will also change. You have great interest rates and pricing available to you, but now you have competition in the Market place. Good old capitalism (remember that?) is again in play. The same dynamics will soon occur in the other price ranges for a variety of reasons. If real estate is on your mind be sure to update your expectations … you might be pleasantly surprised.
Don’t hesitate to act now if you are timing the Market … you may just be outfoxing yourself instead of the Market and Sellers! When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. firstname.lastname@example.org, www.carsonvalleyland.com