It's spring time and the housing market is blooming. After a cold winter, real estate and lending professionals in the Land O' Lakes area are hoping for signs of growth. Here are some bright spots:
More cash buyers
According to National Association of Realtors, all-cash transactions comprised about 25 percent of existing home purchases in fourth quarter of 2010. Investors and those looking for inexpensive rehabs and/or rental properties paid cash for short sales and foreclosures and this shall continue in 2011.
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Fewer refinances versus purchases
Some homeowners have high levels of negative equity (upside down) and credit is still tight, a decline in the refinance transactions is expected to continue in 2011.
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On the bright side, interest rates are still under 5 percent. This number continues to be historically low. Now is the time to get qualified for a mortgage and find a home you can afford. There are many out there to choose from!
Slight increase in home sales
Although the Mortgage Bankers Association predicts a decline in mortgage origination for 2011, sales for new and existing homes are expected to increase slightly in 2011 and a bit more strongly in 2012. Sellers need to be realistic about the value of their home in today's market. There are buyers out there but they are looking at “Value = Price” as the key factor (i.e. it is a buyers' market).