Our economic climate is very interesting to me. The media has stopped reporting so much doom and gloom about the financial markets because there really isn’t any to report….those vultures have moved on to another subject! I think we have settled down –
The real estate market is taking a little break too – but don’t get too comfortable! There is going to be another shift here very soon. How so, you might ask? Well, remember all those loan modifications that occurred about 4 years ago? Many of them were only for 5 years…..and they are beginning to adjust. Those adjustments are putting a financial burden back on the homeowners because their wages have not kept up with the new adjusted interest rate. They will, most likely, have more equity in their home but not enough to be able to refinance to stay.
How will this affect real estate pricing? I don’t expect banks to take a big hit here and negotiate as much as they have in the past – now that they are coming out of the financial crisis – because pricing has gone up. A property might be sold ‘short’ to cover closing costs only –
Look in the $900,000 price point and above for great deals coming soon!