Hello, Trent Woods Neighbors!
Wow, when they called today’s real estate market a “shifting market”, they were right on target. It keeps shifting, and shifting, and shifting….. Every time we turn on the news we have a new latest development that affects our economy and therefore affects the buyer’s ability to “buy”, and the seller’s ability to “sell”.
I promised you more from the best selling real estate book, SHIFT: How Top Real Estate Agents Tackle Tough Times by Gary Keller, founder and chairman of the board of Keller Williams® Realty, Inc. Gary opens the book with this paragraph: “The Real Estate Market has shifted drastically and dramatically. Sales volume and the number of transactions have dropped significantly. Inventory has reached an all-time high. Buyers have never been more reluctant. Fear is rampant, anxiety is high, and people are getting out of the business left and right. Sounds familiar? Sure it does. The year was 1979 and that’s what was happening all around me.” (SHIFT, p. 1).
Does it make us feel better to know that this has happened before? What did we learn from it in 1979? Fast forward to 1987 and it happened again. Changing tax laws at that time had a disastrous effect. Well guess what? History repeats itself. Now we are faced with this again in 2008, but this time there are real differences.
In 1979, mortgage interest rates topped 18 percent. Last week I got a buyer approved at 5.75% through a local lender. That is a huge difference! Today’s sellers, with the help of their Realtors®, are getting realistic with today’s pricing which is bringing our market back on track. The common denominator in shifting markets is that lenders have to expand their options and be VERY CREATIVE with financing. To make creative financing work you will need to remember three things.
1) CREATIVE THINGS SELLERS CAN DO TO SELL THEIR HOUSE, such as seller contributions, owner financing, lease option or purchase, seller seconds, etc.
2) CREATIVE THINGS BUYERS CAN DO TO PURCHASE A HOME, such as gift funding, refinancing existing assets, possible tax credits to 1st time home buyers, non-occupant co-borrowers, etc.
3) CREATIVE THINGS LENDERS CAN DO TO FINANCE A TRANSACTION, such as Lender funded buy down, automated desktop underwriting, adjusting interest rates to cover closing costs, and FHA and USDA programs, among others that are being created daily
As I stated last month, the real estate business is “cyclical”. An experienced Realtor® and mortgage broker will understand this and be prepared to give counsel that is in tune with the current market. Remember though, the news you heard last week is “old news”, so stay in touch with your local trusted Realtor for the update on this ever changing market.
Realtors®, lenders, and other real estate professions are participating in seminars, conference calls, webinars, and many other training events to stay on top of their game to better assist you, the customer! Real Estate remains your single most valuable asset if handled correctly.
Your Real Estate Consultant,
Donna Harmatuk
Trent Woods September 2008 Real Estate Update
(From Neuse River Region Board of Realtors® New Bern MLS System)
Homes for Sale: 70
$100K-$199,999 = 9
$200K-$299,999 = 23
$300K-$399,999 = 16
$400K-$499,999 = 13
Over $500,000 = 9
Homes Sold (Pending): 2
$200K-$299,999 = 1
$400K-$499,999 = 1
Homes Sold and Closed: 5
(September 1-30, 2008)
Under $100,000 = 1
$100K - $199,999 = 1
$200K - $299,999 = 1
$300K - $399,999 = 1
$400K - $499,999 = 1
Average Days on the Market: Trent Woods = 189
Average Sales Price: Trent Woods = $250,600
List to Sale Ratio: Trent Woods = 95%
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