Is there a quick turn around coming in the Housing Market? Could be… And here is why… Basically, it’s a matter of Supply and Demand… First, what nobody has been reporting is the fact there have been plenty of real estate buyers out there… circling, ready to buy for months… They have either had trouble obtaining financing because of the over-tightened mortgage guidlines… they’ve gotten involved in short sale nightmares which go on for months without closing or they are on the fence, fearful that the market hasn’t hit bottom… We have just as many people searching for real estate on our websites in the last few months as we did 2 years ago! So there is already a demand, its dormant but its there. And the Housing Stimulus bill may just release it (and increase it). Easing credit will make mortgages easier to obtain, allowing the pendulum to swing back to center making it possible for more people to qualifly for mortgage loans. The first time buyer tax credit will bring 1,000′s into the market allowing sellers to become move up buyers creating an upwards domino effect. The Housing Stimulus Bill Loan modification programs will allow many to stay in their homes and may substantially reduce the preforclosure and short sale inventory. This one step, if done correctly and swiftly will decrease inventory and help turn around the current home value trend quickly. With less homes in foreclosure and the government incentives, banks will be swifter to process the short sales, getting these properties to settlement and off the market… And as values begin to rise because of the change in Supply and Demand, investors will start shifting funds back into real estate and away from the ailing stock market… There are a few “If’s” but there’s a very good chance we could see the housing market changing very soon… We will keep you updated as things unfold…
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