I do not truly understand all this Mortgage business in the headlines...
Is it a buyers market or sellers?
Is it a bad time to buy or bad time to sell?
I dont get this... can someone explain this to me?
2007-08-28 01:25:49 · 5 answers · asked by bubbie_king 2 in Business & Finance ➔ Renting & Real Estate
With the foreclosure and the amount of homes on the market and amount of eligible buyers it is indeed a buyers market, but with home prices dropping it will get better. With tight credit and a host of mortgages coming up to reset in the next 12 months prices will drop further. Home values have dropped approximately 3.9% my belief is that they will drop at least another 10% as the market has been overinflated for the past 7-10 years. Even if the Fed drops the rate, there are not enough eligible people for mortgages in ratio to the amount of homes on the market now, and this will continue to decline for the next year or two. Terrible time to sell, not quite great time to buy
2007-08-28 11:51:48 · answer #1 · answered by Pengy 7 · 0⤊ 0⤋
Weather or not it is a bad time to buy or sell should only have limited impact on your decision either way. I'm not going to go into a long winded speach as to what's going on in the mortgage industry as I am way to emotionally attached to the situation. I will however point out how it may affect you.
If you are looking to sell a home the field of candidates who will qualify for a mortgage loan has decreased dramatically. Expect your house to sit on the market a bit longer as qualified buyers have much more to choose from.
If you are looking to purchase, find a reputable mortgage banker (like me) who will sit down with you and show you exactly what type of mortgages you qualify for and what it is going to cost you every month. Once you know what you can afford, go out and find your house. While you very well may be buying a house that will turn out to be worth less next year than what you pay for it this year, real estate over the long haul is ALWAYS a great investment. In the current market you have a lot more bargaining room than you did this time last year.
If you are a buyer thinking you are going to flip (buy - fix - sell) a property, think again. Those days are over. (At least for now)
2007-08-28 01:41:18 · answer #2 · answered by loancareer 3 · 0⤊ 0⤋
It is complex, but a short version, folks that took out adjustable rate or interest only loans several years ago can no longer afford the payments as they begin to adjust. Hence, we have a boat load of foreclosures.
Right now in most markets - it's a buyer's market. Too much inventory and not enough buyers. This is still a good time to buy.
2007-08-28 01:32:47 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Buyer's Market; There are too many homes for sale. Good time to buy; people are desperate to sell their homes. Bad time to sell; too many homes for sale.
2007-08-28 01:58:12 · answer #4 · answered by ? 4 · 0⤊ 0⤋
it's definitely a great time to buy. there is so much inventory available that you can call the shots and get closing cost help and a great price. http://www.choicerealestate.net/
2007-08-28 02:47:40 · answer #5 · answered by Anonymous · 0⤊ 0⤋