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Marilyn Mess…, Real Estate Pro in Sudbury, MA

Interest rates are so low; what are buyers waiting for?

Asked by Marilyn Messenger, CRS, ABR, Sudbury, MA Wed Aug 25, 2010

We hear from the "experts"; I'd like to hear from you?

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11
Hi there - it is quiet - I was hoping to see a pick up after Labor Day but really have not. I think the prior posters have hit on the high points with financing challenges but I also believe that the level of uncertainty in the economy is having a real trickle down effect. Uncertainty seems to be causing near paralysis on many fronts which is not a good thing. For those that qualify and find inventory of interest, I encourage action. There are communities in my area that are moving at near "normal" levels on average, with well priced attractive homes moving very quickly and overpriced homes sitting, but the average overall is a normal 5-6 months which is really very good. To buyers interested in this community or others that are moving well, I say don't be fooled into inaction by what may be a false hope of decline...far more likely that you will watch inventory slip away from you. I have that situation in play with a few buyers now....

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Mon Sep 27, 2010
Interest rates being the reason to buy has been beaten to death. I honestly don't the term of low rates is as appealing to buyers as "short sale" or "foreclosure", and with the shadow inventory there is a lot more of that coming.
0 votes Thank Flag Link Mon Sep 27, 2010
It's nothing to do with rates, As a buyer's agent I clearly see it's becoming more and more challenging for buyers to secure financing. The guidelines are forever changing and it's never favorable. For example effective October 4Th PMI will essentially double on FHA loans making some eligible buyer non eligible or at the least increasing the expense of owning a home. The other problem is that we are in the middle of a recession. If you don't have a job, you can't buy. If you do have a job, pay is low, increases are minimal everyone is struggling. Buyers need jobs that pay them enough so that they can purchase a home. That's my opinion.
0 votes Thank Flag Link Mon Sep 27, 2010
A good question..... I think they are still waiting for the proverbial sky to fall
0 votes Thank Flag Link Tue Sep 21, 2010
I think it is a little to do with the tax credit and some to do with the time of year. I have many buyers that could not find anything in the past 12 months in the price range they qualified for and now I have them all out house hunting again with a rate of 4.25% (4.5% APR) fixed for 30 years only putting down 3.5% with increased sales purchase power of $20-40k because back 12 months ago rates where at 5.25-5.5%, that reduction in price could get those borrowers into a home of a price bracket higher. If you are working with buyers have them check with their lender to see whta they qualify for now. Also hot FHa product is 5 year fixed loans at a rate of 3.75% APR.
0 votes Thank Flag Link Tue Aug 31, 2010
So many houses rushed to close before the dead line. I think it will start to pick up a little. Everyone got in while they could, but now sellers have to drop prices to compete. Antiques, wine and cars prices have fallen 30-50 percent. Its not getting better quite yet.
0 votes Thank Flag Link Thu Aug 26, 2010
I think everybody's right. To Jim I say - that is great to hear that your business has been so brisk. I am busy and working with a good number of buyers, but do find a higher level of hesitancy than pre-Tax Credit deadline. I will say that several first time buyers I am working with are buying homes that suit them so much better than the ones they were considering in a near frenzy trying to qualfiy for the Tax Credit. And with rates having come down and making up for the Tax Credit and then some, they are truly the winner.

A buyer I am working with locked in 4.125%, fixed - 30 years, conventional - never thought I'd see the day! Rates are amazing - for those that are in the position to buy -- employed -- good credit -- what a lucky time.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Wed Aug 25, 2010
Rate are great but try to get approved for it these days.............
0 votes Thank Flag Link Wed Aug 25, 2010
They're waiting for credit.

Unfortunately with such high unemployment rates fewer people can purchase a home. People today cannot hold numerous homes the way they could in the past. Now in order to purchase they must first sell. Then qualify as well.
0 votes Thank Flag Link Wed Aug 25, 2010
It may be a combination of the doom and gloom in the media and the fact that lending requirements have tightened considerably.
0 votes Thank Flag Link Wed Aug 25, 2010
I don't think they're waiting around here! I've sold more after the tax credits expired than I did before.
0 votes Thank Flag Link Wed Aug 25, 2010
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