Today I talk about principal reductions, buyers like the suburbs, some problems in commercial real estate and home affordability!
Hope you had a great weekend! Today I talk about principal reductions, buyers like the suburbs, some problems in commercial real estate and home affordability!
Principal Reductions: Yes or No?
I am not the only one that thinks principal reductions are not a cure all for the woes in real estate: Principal Reductions Won’t Solve the Mortgage Mess
I DO think that allowing the home owners facing a tough time to refinance the balance of the mortgage at today’s historically low rates might be a better option.
The Burbs or The Big City?
Not a big surprise to me that House Hunters Favor the ‘Burbs Over Big Cities. I deal with buyers all the time and honestly, I still do not understand why developers insist on postage stamp size lots. Sure they can get several more homes in the subdivision. But if they focused on what home buyers want, could they ask more for the home? Or sell homes faster by pointing out that their lots are BIGGER than the competition?
2 Tidbits about Commercial Real Estate
Consider these 2 stats from NAR:
- 72% of closed sales required a down payment larger than 20%
- 30% of closed sales in 20912 were CASH transactions
Maybe I should not bitch so much about how residential buyers are having a hard time getting mortgages. Now how is the economy going to grow or recover when banks are not making loans that will create jobs?
How Affordable Are Homes?
Very very affordable! The low mortgage rates combined with the super home prices is making it a very attractive time to buy a home. Yeah it might be tough for people with iffy credit to get a mortgage but it does not change the fact that conditions are great for home buying today. Is it the right time for you to buy a home? I sure hope so since the National Association of Home Builders just said that Housing Affordability Hits Another All-Time High