Spring 2008 MARKET UPDATE: Great Buys and Great Interest Rates Attract Buyers
Williamsburg and Peninsula Markets show some signs of recovery, but Sellers should expect to give maximum concessions. New lending guidelines have tightened underwriting restrictions and virtually eliminated 100% financing; however, FHA loan limits are higher than ever and seller concessions may be allowed up to 6% of loan value! which ultimately is good for Sellers, since it in some ways expands the ability to buy to include buyers who might otherwise not be able to take action. Although consumer confidence levels have dropped in recent months, buyers continue to shop, enticed by greater affordability. As entry level Buyers return to the market, "move-up" Buyers are created, and they in turn will shop for a replacement home. Mid-price and higher markets will become more active as prospective Buyers feel greater confidence in being able to sell their existing homes. What to watch: The sub-prime lending scandal will eventually recede, leaving a pent-up supply of able borrowers qualifying for fixed mortgages, who again want to buy; and if interests rate continue to hover around 6%, affordable prices will bring recovery to a corrected local market.
Sellers: Stage, stage, stage! More than ever, extensive pre-listing preparation such as staging is essential! In some cases a staged property will even inspire competing offers, which results in greater proceeds at sale. In today’s softer market, even in entry-level housing, buyers have so many options that they are likely to reject a property unless it is clearly an outstanding value. An oversupply of new construction will continue to drive down prices in the re-sale market. Sellers can expect bargain-hunting behavior to increase until demand once again becomes limited. What to watch: trends in feeder markets in the Northeast and West Coast that will shape the behavior of incoming Buyers.
Buyers: take advantage of great rates AND affordable prices. A great rate now could be worth more to your bottom line than lower prices will be later; at the same time buying now will bring quality of life improvements NOW. Call your agent, who can advise about the best scenario for terms and prices; and also will recommend a reputable competent lender with known integrity to be your mortgage adviser.
Talk to an Expert, and get the real info you need. Are you thinking of buying or selling? As a Seller, do you want to know what you should be doing to prepare, and what you could likely expect at sale? As a Buyer, would you like to know more about your options, as well as receiving the latest property listings, on the schedule you require? Call or text me at (757) 869-7070 for an in-depth analysis of your situation plus the expert advice you need; or email me at melissa@melissahoffmanrealtor.com to let me know you would like me to contact you.
FREE MARKET SNAPSHOT You may want to receive a Market Snapshot which will show you comparison properties derived from your local MLS listings. Simply fill in information about your home or the home you are interested in buying. For your personalized Market Snapshot, click on the following link if you live on the Peninsula or in Southside Hampton Roads: http://www.homeinsight.com/Widget/default.asp?P1T1175X0EI5
In the Williamsburg Area, click on the following to receive a Market Snapshot based on local MLS listings: http://www.homeinsight.com/Widget/default.asp?3E7AFM0YTK54
