The housing market and how I think it will work.
Many of the news stations and economists are reporting an up swing in home sales this last 45 days or so in our area of Monterey County. While the statistics will support this reporting, I think it is something that is not indicative of our market place for very long. The buyer down payment assistance programs that have been out there for first time home buyers to use, is no longer available. The Nehimiah program that was helping so many of these first time home buyers take advantage of the lower prices on homes has been discontinued by the government. With no assistance and no 100% financing available, it will impact the market that was just starting to see some activity. It doesn’t seem likely that we will see anything positive for some time now until the lenders figure out a way to get these people qualified and start making loans again. It is natural that lenders are feeling a little “iffy” about most of these loans as they look at their REO departments and the inventory that is now available, so until something big happens in the lender industry, we can only stand on the sidelines and wait.
The coming Presidential election will no doubt play a big role in what gets done in Washington and in some ways it is a good thing that the election is just around the corner, it will spur some sort of movement by both parties trying to convince us that they have the answers, we will just have to wait to see.
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