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Team Healy (…, Real Estate Pro in 03053

Who do you think this market favors?

Asked by Team Healy (Brian & Michelle), 03053 Sat Aug 4, 2007

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Bob Giusti’s answer
Let face it, the market favors the buyers! If you are a "Qualified Buyer" (Ready, Willing & Able), this an absolutely ideal time to buy. Could the prices drop even more...maybe, but unless you are going to be in the home for 2 years or less, it's a good time, can you tell me what the interest rate will be 6 months from now or even next year?

If you're a seller who doesn't have to sell don’t sweat it, price your home at fair market value and the home will sell. Yes, there are many out there who are looking and preying on those who are in financial troubles, if you receive one of those unreasonable offer from a bargain chaser that’s OK (they have every right to fish, but last time I checked the seller owns the home).

Buyers, it’s your time to sort thru the entire inventory and take your best shot, but keep in mind that not all sellers have to sell. There is still a “large majority” of home for sale that the sellers themselves want to take advantage of the lower prices and move up; the children have left and the sellers want to downsize; the seller want to make a lateral move into a better school system, etc.

With all the new about the historic rate of foreclosures, know this, the rate of foreclosures is still about 1% of the real estate market, the big new is the prices have dropped to price levels that hard working people (proportionate to all financial levels) can now afford not that everyone is getting foreclosed on. If you’re looking for the bargain house and I’ve shown 25 or so homes in foreclosure over the past couple of months and let me assure you, they are not a bargain. If you looking for a project that where to look but these homes are usually trashed, if your looking for a “HOME”, then your best served looking at home by homeowners who have invested in and taken care of these home, that where the bargain is…favor home buyer.
1 vote Thank Flag Link Fri Mar 28, 2008
BEST ANSWER
This market favors those who understand it. Those who don't will be left out in the cold. Educated sellers and buyers have power.
Web Reference: http://mioaklandcounty.com
1 vote Thank Flag Link Wed Oct 3, 2007
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
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Currently I think this market favors buyers. But don't leave out the savvy sellers who know what they are doing. Even in markets that have not made the complete shift, buyers now have more options and are able to request more from the sellers than they were even six months ago.
Web Reference: http://carriecrowell.com
1 vote Thank Flag Link Sat Aug 4, 2007
Brian,

Buyers have seemed to be favored with the reduced home prices and low interest rates. Our market may be shifting because we have only 2 months inventory of homes for sale. There are many buyers looking to buy and multiple offers are starting to occur. Depending how long the low inventory of homes lasts, prices may start to go up. Many believe this year the real estate market will start to recover which may help the sellers.

Thanks,
Carol Perdew
Prudential California Realty
(209) 239-7979
Carol@PerdewHomes.com
http://www.CentralValleyHomes.com
DRE 985176
0 votes Thank Flag Link Tue Jan 24, 2012
Everyone is favored in this market! A seller is going to be a buyer, a buyer will find a great deal. When prices are inflated, the seller is also moving to another property with a higher price anyway.
The glass is half full!
0 votes Thank Flag Link Tue Jan 24, 2012
I agree, this is a great market for buyers with credit especially over 650 as well as cash investors. The marginal credit buyers pay a higher rate.
0 votes Thank Flag Link Wed Sep 29, 2010
Buyers with good credit for sure. You can get a great rate and a great value on a home.
Web Reference: http://GetPrequalified.com
0 votes Thank Flag Link Sat May 24, 2008
In my previous answer I forgot the credit score issue. During 2007 some with a credit score of 570-580 could easily purchase. During 2008 lenders are requiring credit scores above 600. While reserving opinion whether requiring the higher score creates a better qualified buyer, it is difficult for many.
Web Reference: http://www.tomslupske.com
0 votes Thank Flag Link Sat May 24, 2008
I don't think it out and out favors buyers.

Yes, prices have dropped - but with the dropping prices, more and more homeowners are holding on to thier property. There are less available homes for sale to begin with.
You see it all the time on here - agents talking about multiple offers on homes, buyers talking about being outbid and losing homes - this idea that it's a definitive buyers market i think is more hype then reality.
0 votes Thank Flag Link Fri May 23, 2008
Who do I think this market favors?

For most the easy and quick answer it is a buyers’ market. However, that’s only considering some of the facts! Yes, housing prices have declined therefore the sale price of a house is less. However, that may be too simplistic.

Example: hypothetically the value of a house in 2007 was $300.000. During 2008 that price may have declined to $280,000. During 2007 it was possible to purchase with zero down payment and have seller pay buyers’ closing costs. Today, there are few, if any, zero down financing. 3-5% is the least down payment. In 2008 a buyer may have $22,400 costs (5% down payment and 3% closing costs) they did not have in 2007. This market example does not favor the buyer!

An additional consideration: in declining markets, as identified by FNMA, many lenders are requiring an additional 5% down payment. If your original down payment was 5% the down payment is now 10%; $28,000.00 plus closing costs.

Three questions: 1) Will lending cost continue to increase? 2) Will prices continue to decline? 3) As other products such as gasoline, food and other products pressure inflation will interest rates increase to ease inflation?

In conclusion, who does the market favor? It was less costly (out-of-pocket) to purchase in 2007 than 2008 and may be more costly during 2009 even with declining prices.
0 votes Thank Flag Link Fri May 23, 2008
Buyers! I think we're back to 2002 prices in Southern NH
0 votes Thank Flag Link Fri May 23, 2008
At NHhomeSale.com we are seeing markets within markets. For example; in the Nashua/Hudson area we are seeing median condo prices actually increasing and selling 97% to list price. In most of Rock/Strafford county we are seeing 95%. As with any investment market, those investments with the biggest gains will produce the biggest declines, but in the end, THE BLUECHIPS PREVAIL. SO MAKE SURE YOU ARE BUYING A BLUE CHIP IN THIS MARKET. AFTER ALL LOW RATES AND PRICES MAKE BLUE CHIPS FINALLY AFFORDABLE. Joe and Marina NH HOME SALE. http://www.NHhomeSale.com
Web Reference: http://www.nhhomesale.com
0 votes Thank Flag Link Wed Mar 26, 2008
Did you ever see the midas muffler commercial?
"I'm not gonna pay a lot for this muffler"
its kinda like that
I'm not gonna pay a lot for this property

anyways

good luck
0 votes Thank Flag Link Mon Mar 24, 2008
Real Estate is local, but nationally there are 9.6 months of inventory, down from 10.2 months. 6months is the mid point between a buyers and sellers market with a buyers market being greater than 6months inventory. A good Realtor in your local can and should be able to calculate this for you including market absorption rate.
0 votes Thank Flag Link Mon Mar 24, 2008
It is definately a BUYERS market in Southern NH. There is a years supply of inventory plus the rates are still at an all time low. Seller's need to understand they may be selling a bit lower in these times but they will be buying lower as well.

Buyers also understand there isn't the same sense of urgency to buy because there is so much available. Sellers are lowering the list price in order to compete for the buyer.
0 votes Thank Flag Link Wed Oct 3, 2007
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