The Housing Sport

As we hope that the economy recovers and it becomes “life as usual,” we can’t help but observe the trends that are developing and other issues that appear more evident, although, puzzling.  The housing market plummeted, up, down and beyond, resulting in a lot of housing inventory and high affordability due to low pricing.  For a while, home prices did not make sense, were chaotic, as sellers and realtors, were swimming against the tsunami of a volatile housing market.  There’s still a lot to be desired, but agents are armed with survival equipment and sellers are learning to navigate the deep waters.  But despite plenty of inventory, low prices, historically low interest rates, and an $8,000 first time buyer tax credit, buyers are looking from ashore and not jumping to get their bottoms wet, or should we say; that buyers are concerned about getting their “bottom lines” wet?

Buy now, with the approaching deadline of December 1st to take advantage of this incredible tax credit, buyers should be making an informed decision as “to jump or not to jump”, “to play or not to play” – that seems to be the question.  Agents are being proactive on promoting this great advantage, sellers are more willing to negotiate than ever, but lenders seem to be “throwing hard balls”, as buyer qualification becomes more strict and less lenient. 

But isn’t this a good thing?  Wasn’t it the overwhelming amount of subprime mortgages that lead us into this financial abyss?  If well qualified buyers are being required to jump thru hoops and loops to get the financing needed to take advantage of the present housing market conditions, while others get their foot caught in the loop, the government injection of funds and tax credits just isn’t enough to jumpstart the heart of the housing market. 

Some agents have become great performers, sellers have become spectators, and buyers remain on the bench.  So, the question is:  Are buyers on the side lines, or are they being kept at the dugout?