Quote:
Originally Posted by onewhippedpuppy
Funny how the bubble markets have affected everyone. We have radio commercials touting "a great time to buy" real estate, despite Wichita's constant 3-6% rate of appreciation. I suppose it has probably made everyone a bit skittish.
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Same here. Bloomington has been in the 3%-6% range my entire time here.
In my company newsletter, there were about 6 houses for sale last February. This February, there are over 70.
My thoughts:
-People who can afford to buy are buying. We have a lot of people who can put 20%+ down and have 700+ FICO scores. Many are locking in low rates and "moving on up". The giant middle of the local market ($125k-$250k) is doing well.
-At the bottom end of the market, people are in trouble. These are people who got an ARM to buy a 100-year-old house in a not-so-good neighborhood for $40k. Their ARM has readjusted (or will soon) and they can't afford to stay and they can't sell. No one who has the credit/downpayment wants to live there and no one who wants to live their has the credit/downpayment.
-The top end of the market is dead too. People in the giant middle can't get the risky financing to break into the top of the market. People in the top aren't buying/selling as they take a wait-and-see approach or realize that getting a jumbo is tougher.