What's on the market in Journey's End?

What's on the market in Journey's End?
Click on the photo above and see the homes for sale in Journey's End

12/3/09

Biltmore...conventional sale and some opinion and prediction for what's coming up!


A Biltmore model on Houlton Circle was sold on 11/30 at a price of $315,000. This was a conventional sale (not a short sale or foreclosure). The home was on the market 62 days at an asking price of $325,000.

The sellers were the original owners who purchased the home in November of 2000 for $222,700.

This sale is a very good example of what I have been saying recently regarding homes that are NOT distress sales: These homes are selling quickly and for prices above what a comparable short sale will bring. Buyers are fed up with the inefficiency and incompetence displayed by the lenders in negotiating short sales and will pay a premium to avoid dealing with that situation.

Couple the above with the expanded and extended tax credit and the next 6 months will be a good time for sellers to market property that is not a short sale.

After the expiration of the tax credit (which I don't believe will be extended again) and the scaling back of the open market purchase of mortgage backed securities, (which will most likely cause mortgage interest rates to rise), I think the market goes into another decline as a result of the removal of those artificial supports.

Here is a little snippet of an article I was just reading regarding MBS: The Federal Reserve is pumping $1.25 trillion into mortgage-backed securities to try to bring down mortgage rates, but that money is set to run out next spring. The goal of the program is to make home buying more affordable and prop up the housing market.


The window of opportunity is open now...

No comments:

Post a Comment

 
Real Time Web Analytics