1. More Foreclosures on the market and
2. Fewer buyers because of tightening lending standards.
We've come full circle. and are now in a Buyer's market (sorry Sellers). Mrs. Morgenson goes into great detail about the mechanisms behind this, but one pearl of information was this:
Each housing market is different and you should be aware of local market conditions when considering a purchase. Who better to inform you than a trained professional, someone versed in the current market condtions, a Realtor!
Mrs. Morgenson also addressed the the recent action by the Fed cut to the interest rate. (Since this broadcast they dropped it another 3/4 of a point) With these cuts you'd expect interest rates on houses to drop, but they haven't dropped as much as they normally would. Why is this happening? She says that it is because lending institutions are trying their best to cover the losses from the bad loans they put out. Unfortunately, the loser in this scenario are the Borrowers out there. They are being used to cover the risky lending that went over the past few years.
Many people ask me when is the time to buy? I would say this: Now is a very good time because there is great selection and lower prices. Additionally the interest rates are low and should drop a bit lower.
Also we are now seeing the investors come out of the woodwork, a good indicator the market might be bottoming out...
So if you need some advice, feel free to contact me:
mobile: 707-616-3456
email: andy@azalearealty.com
If you'd like to browse the MLS for homes for sale click this link :
