My family is trying to sell their house in the Northeast US. Broker tells us the market is in a slump at the moment. What exactly does that mean, and when can we expect to see an increase, My Yahoo answer nostradamus..
2007-07-11 19:12:02 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
There are assorted reasons for the housing slump, as your realtor calls it. The biggest reason is the current mess in the lending industry, relative to foreclosures. For the past several years, lending underwriters were rather loose with their requirements to qualify people for mortgages. Anyone with a warm breathing body could probably qualify for a mortgage. Appraisals were not done honestly, and properties were overvalued by appraisers 'to get the deal done'.
When the foreclosures started happening, the lenders started screwing down more tightly on their criteria for lending. This took a considerable number of people out of the buyer market, resulting in more properties available for purchase than there were buyers.
When there is an oversupply of inventory vs buyers available, sellers start cutting prices, etc.
Hence, the buyer market and the slump. As far as your realtor indicating to you that there is a slump, he/she is 100% correct. The rube who suggested that you change realtors is living in LaLa Land. Better to have a realtor who tells the truth than one who paints a rosy picture which isn't reality.
2007-07-12 01:45:31 · answer #1 · answered by acermill 7 · 1⤊ 0⤋
Housing prices shot up too high so nobody can afford to buy houses anymore. It's in a slump because neither the seller nor the buyers can get the price they want.
Wait awhile for the situation to get better.
2007-07-11 19:20:52 · answer #2 · answered by floozy_niki 6 · 0⤊ 0⤋
It's due to inflation. Salaries have not kept pace with the cost of living, and the housing market, in some parts of the country, are over-inflated. In California, a simple 2 bedroom, 1 bath, older home is over a quarter of a million dollars!!!
How is a(re) person/s supposed to afford the monthly payments AND insurance AND everything else?
That's my opinion.
2007-07-11 19:17:18 · answer #3 · answered by Rhonda 7 · 1⤊ 0⤋
abode expenses have been artificially extreme because of the actuality you had banks that ought to own loan you those riduculous quantities. expenses of homes ought to be on value of rents. look at California, maximum persons expected to purchase those overpriced residences because of the fact they have been advised they get exhilaration from in fee with the aid of a few phony share. So after a quantity of time they could be rich! do no longer ignore to comprise the appraiser he needs a job, so he appraises homes at to which the banks will own loan a great quantity. Why no longer? the money is secured such as you reported. those creates and inflates a bubble. as quickly as you ought to a lot of human beings no longer waiting to pay their mortages anymore then it is going to become obvious. Even people who had jacked credit could nevertheless recieve a house. The disaster you spot at present is evolution of the Federal Reserves's artificially extreme expenditures of pastime. I definately does not call this capitalism, because of the fact we rather have not had that yet. there has been no loose industry. All we've recieved is numerous intervention from super brother, and that they spoke of because it capitalism. How is it capitalism, once you have politicians re-allocating capital, while they desire to recieve votes?
2016-10-01 10:33:22 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Your broker may be in a slump, but nobody else is. Find a broker with a positive attitude..
2007-07-11 19:15:00 · answer #5 · answered by Anonymous · 0⤊ 2⤋
there are good months and bad months to sell ur house... my mom knows all about this!!!
2007-07-11 19:16:44 · answer #6 · answered by Anonymous · 0⤊ 0⤋
to many aliens
2007-07-11 19:15:10 · answer #7 · answered by vinnienutsack69 2 · 0⤊ 0⤋