Health & Fitness
WHAT IS NEW IN THE REAL ESTATE MARKET
Everyone asks me “so how is the market”? Crazy would be the answer. Your next question might be “why?” The answer is a little bit convoluted. There are major factors affecting real estate now. I’ll briefly touch on them:
The new mortgage regulations that took effect in January have narrowed the qualified pool of borrowers. Specifically the 43% debt to income ratio and business owner income reviews are impactful. It impacts business owners in two ways. One, it requires two years of returns evidencing income. Previously, it was generally accepted that the reported business income was not necessarily the actual income so there was some leeway. Under the new regs that’s verboten. Additionally, the debt to income ratio is something lenders are considering as written in stone. Gen Xers and Gen Yrs and even some Boomers have a high debt to income ratio in many cases because of high credit card debt and student loans significantly affecting the number of people that are qualifying.
There is a lack of inventory, however, new construction, newer construction and younger homes generally have it all over older homes whose price tags are comparable but require costly renovations making them less desirable depending on location, schools, accessibility and ease of commuting.
Find out what's happening in Howellwith free, real-time updates from Patch.
Cash buyers are the kings of the hill. Everyone loves a cash buyer. Everyone! Except the borrower entering competing bids against a cash buyer. The cash buyer is always the safe bet. Mortgage applications are at an all-time low, meaning the pool of qualified buyers is drying up faster than a small oasis in the Sahara.
Although there is a lack of inventory which typically would make this a sellers’ market, the lack of qualified buyers strongly suggests that on a coin toss this is a buyers’ market.
Find out what's happening in Howellwith free, real-time updates from Patch.
So what would I do if I were on the fence about selling? I would call me, get comps, and discuss pricing and marketing and get the sign on the front lawn before Easter. After Easter everyone that has been dreaming about Florida all winter long is going to put their house up for sale hoping to get out before summer.
If I were buying I would call me, let me know what I am interested in and discuss your plans and desires. I will keep you alerted to new listings available, sign you up to view MLS and preview homes that fit your needs and wants.
Contact me with all your real estate questions. If you are selling or buying call me first. Sellfast@edwardmonti.com.
