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re housing market







I list a lot of homes and most of the paper that is written now, is really poor, bond money for down payment, costing costs back and FHA loans, in other words they don't have any money. The stupid buyer,realtor and mortgage broker are back, like 2005. All drunk on the $8K payoff. The problem with the government programs is that it is using up all the first time homebuyers and with the 5% loans and bank owned properties, most are buying now.... The best people were under contract in May to August. I am getting a lot of foreign investors right now with the weak dollar. I am expecting a big surge the next 3 weeks as everyone tries to get "in" before the deadline ends. Even if they exend this, the quality of buyers will deminish and like everything else demand will curb and prices will probably decline again next year. There are 7000 pending contracts right now in the greater Orlando area, with probably half of them going back on the market when the 8K party is over. What you will see across the nation in Nov./Dec is a huge increase in inventory and a lack of interest in new loans. That should have a huge negative effect on the banks, as this will deminish earnings and loans that they can sell. All these programs have kept prices stable the last few months, but I'd expect that next year it will be bank owned against bank owned with less and less buyers. If they give an investor credit next, that would be the only way to save the party.... forget the first time home buyer that is exhausted and all is left are the poor people.