Current market conditions Steve Eveleth Blog 5/17/2009
Well the entry level market is certainly taking a turn toward a seller’s market that’s for sure. On average there are 3 to 5 preapproved buyers for every bank owned home that comes on the market in the East Bay area & central valleys. Reason for this is low prices, great rates & demand demand demand!! First time buyers make up a whopping 71% of all purchase since early 08. Remember how it was in the early 2000’s when everyone was buying up properties like crazy? Here is what’s similar & why that is happening again. Low rates, high prices & adjustable loans that allowed you to pay a portion of the interest letting you purchase way higher priced home because you had a low payment with a neg am loan. This combination sucked up the inventory like crazy Well check this out now: low rates & fixed loans & inventory getting sucked up like crazy, what makes this happen again is prices have come down now with fixed rate loans verses the adjustable loans making affordability the same. Its simple High prices with neg am loans, low prices with fixed rate loans equal same payment equals affordability gab!! We are simply creating a new foundation of buyers in solid 30yr fixed loans…….start seeing some price increases soon everyone….then the big: moving up “boom will start soon!! Where will you be positioned when it happens? http://www.steveshomesearch.com/ Steve Eveleth, my job is to get you into a home!
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