The Good:
For Sellers: Pricing has jumped YTD by 16%. Demand is up and supply is down. Can you say seller's market (short term). More sellers are no longer underwater and can sell on a break even or positive equity basis.
The Bad:
For Buyers: Higher Prices, Limited Inventory, Corporate Cash Buyers and Higher Interest Rates. Need I say more?
The Ugly:
For Buyers & Sellers : The Fed's decision to scale back bond purchases in light of the ongoing recovery(?) will lead to higher interest rates. As rates go up buyers ability to qualify for financing and purchasing power decreases equating to less demand. For sellers that could mean flat or even deflating prices. Ouch!
The Silver Lining:
For Buyers & Sellers: Many post crash FHA mortgages are assumable! As rates rise, assumable rates at 3.25% to 3.75% are a win/win situation, maintaining purchasing power for the buyer and housing demand for the seller. When Home Shopping make sure your agent does their homework and investigate seller financing options.
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