I have noticed that all the national news garbage about failing markets does not really apply that much here in our area. Yeah, things have slowed but there is little indication of prices falling. There are a few people that want to list their properties as if the boom was still happening but no real loss in value appears to be happening. Builders in the higher end of the market that started building in the middle to end of 2006 seem to be affected the most with price concessions and time on the market. I would be curious if anyone has other observations? The lower ends of the market have extremely low days on the market still. Rates certainly are not prohibative. I hear from those in the lending business that the guidelines for some loans have tightened over credit qualifications which is slowing the lending a bit, people that can’t qualify that once did.
Since the lenders some years ago were financing 100 percent simply to get business and now they have tightened their qualifications a bit, I see that as a positive step in making the lending business healthier. If you don’t qualify for a loan, why make the loan anyway. It will put the borrower in a bind and end up costing everyone more money. Of course housing prices are mostly dependent on how many buyers there are out there. From my point of view business is still good everywhere in South Central Pa so the market should thrive and buyers who are well qualified to borrow should still be there. What we are not seeing lately is mortgages being granted to those who don’t qualify. For those buyers, maybe it is time for them to concentrate on lowering their debt load and not spending so much money on frivolousness.
As an Realtor I would like to see everyone own their own home but in my many years in business I have seen some of those buyers with debt loads on automobiles alone so high that it would be hard to see them affording a house, or the expenses that go with it.