Well I lost an escrow this week. I started kicking myself because I’ve had such an excellent record of closing this past year. As soon as I began talking to other agents about it, I realized I’m not the only one struggling to get buyers through the loan process.
Banks and asset management companies are going through some tremendous changes right now. Remember all those bank mergers last year? Well the big banks are just now starting to realign the banks they bought. Departments are being phased out, managers are being replaced and companies are going through the inevitable "downsizing". All of this adds up to chaos and confusion for real estate agents trying to buy and sell their properties.
Patience is the buzz word in this situation. Escrows are going to take longer. Some deals that should be slam dunks are going to crash out. I’m educating my buyers that escrows are going to be more bumpier than normal. The winners will be the buyers who have the fortitude to ride out this storm and stay the course.
Being a Real Estate Professional, the question I’m most often asked is, what’s going on with the market? People sort of expect me to say "it sucks!" Truth is, real estate is always local.
In some areas, I have no doubt it does suck, but where I’m at, the market is doing well (for me anyway).
What’s happening in Monterey County is increased sales. More transactions are taking place now then at the same time last year. Fully one third of the market is in escrow. Over 300 single family homes are selling every 30 days, and have been for quite some time. Sales are and have been very steady and stable.
On the other hand, prices continue to adjust.
In some areas, they have fallen by as much as 50% in one year’s time. Anyone who even dreams of playin the "flip" game is asking for trouble under these conditions. I hear we are going to get slammed with REO foreclosures this summer, At the same time I hear that the banks are going to "freeze" foreclosing and work out loan modificaitons. Who knows who’s right? All I know is the market is moving and buyers continue to show a healthy appetite to purchase homes. I hope you are someone who is in a good position to take advantage of the opportunities in this market.
Years from now, when people look up the phrase "Buyer’s Market", they will see a picture of today’s date. How can people not want to buy right now? You have low interest rates (some of the lowest in Mortgage history), you have relatively low prices in many markets and you have the tax credit program (which could be as high as 15,000!) for anyone purchasing a single family home right now.
Traditionally, we were accustomed to seeing low interest with high purchase prices or high interest when prices were low. It’s very unusual to get both low interest and low price. Throw in tax relief and it’s just a no-brainer to buy now.
