Out On A Limb

Over the next couple of months I expect to see buyers get some of the best bargains we have seen in quite some time. Sellers fear of the unknown, relocation bail outs and some very motivated sellers combined with lots of inventory to choose from set the stage for buyers to reap the rewards in the market place. Smart buyers will pluck off the low lying fruit before the new year begins.
As we enter 2008 I look to see seller confidence lead to a leveling out in the pricing as the Spring market begins to unfold. Rates are a big unknown but I do not look for them to fluctuate much either way. It is not worth waiting to potentially get a lower rate nor is it worth compromising on your home selection because you think rates will go up. As you read the news if you see inflation frequently then rates will most likely stay stable or go up, if you see recession then rates will most likely go down. Either way I do not expect to see much fluctuation in mortgage rates. I do look for the conforming loan limit to be increased which will help our market tremendously and I look hopefully for changes to FHA and VA loans loan limits as well. Both of those programs saw limited usage in the last few years as Wall Street entered the mortgage market with 100% financing and low doc loans. (That is what got us into the position we are in) Now that they are out of our market we will see a resurgence in that type of financing.
We will see more foreclosures come into the market but we are also seeing lenders move aggressively to avoid having to take a home to foreclosure. They are restructuring loans and lowering rates, forgiving debt, re-amortizing for longer time frames and basically working with those home owners who want to keep their home. I also see banks moving to different selling strategies such as auctions so we may not see our inventory swell by as much as it could.
It is an election year so that will affect our marketplace somewhat but I will go into that more in January. Generally the pluses equal out the minus’s though. I do see positive growth in our job market and I do see lots of buyers searching on the web. I also have seen a little spurt of home buying in October making up for the slower times in August & September. I look for 2008 to not be a whole lot different than 2007. It was a great year for our team! I expect the sales to stay steady through Spring as well as the pricing. For sellers it will mean that you must have your home in great condition, priced competitively and aggressively marketed. For buyers, the best values are right now and those that pluck this low lying fruit will win.