Ruth Mantell (Market Watch,The Wall Street Journal) wrote this article today:
“U.S. Nov. existing-home sales fall 8.6%
Home prices decline at fastest annual pace on record
WASHINGTON (MarketWatch) — Resales of U.S. single-family homes and condos fell a surprisingly bad 8.6% in November to a seasonally adjusted annual rate of 4.49 million, the National Association of Realtors reported Tuesday, even as home prices fell at the fastest annual pace on record.
The result is much weaker than expected, as analysts surveyed by MarketWatch were looking for sales to fall to an annual rate of 4.9 million from the prior month’s result of 4.91 million. Resales are down 10.6% in the past year.”
I have as a broker on the North Fork never seen an environment more conducive for savvy, able buyers to make deals!
Sellers are at a distinct disadvantage at this moment: jumbo loans are hard to come by, so any home for sale which would require a buyer to take out a Jumbo Loan: not impossible but highly improbable to paraphrase Sherlock Holmes!
Buyers if approved have FHA loans available to them with as little as 3% down, with a Federal Tax Credit of $7,500, and maximum loan amounts under $729,500 for 2008. But the house needs to appraise (in what is now a high risk declining market on LI). Retail pricing may today not appraise out.
But buyers: take notice: this may be a small window of opportunity! Governments all over the world are trying to restore liquidity and credit in the financial markets and are putting their money where their words are. Jumbo Loans will be available again, and more buyers will come back into the market. How much lower will things go than today? Nobody knows. But remember: smart people like Warren Buffett decided not to try and time the market and bought. Shouldn’t you? And buyers, realize all real estate is local, and the North Fork remains desirable. We still experience bidding wars when property is priced right. Be reasonable. Talk to your mortgage professional and make sure you get a great deal. We can connect you a number of professionals to choose from.
Let a professional Buyers Agent guide you in this market, able to tell you the difference between retail pricing and great deals. Let us show you! You’ll be happy you did, before this window of opportunity is gone.