Perfect Storm was written because it seemed so amazing to me that more buyers were not getting into the market. Since that post in February we have heard the threats of rising interest rates and hints that the bottom is near but that didn’t frighten anyone off the fence really.. There was more transactions written towards the end of the tax credit in April but many of them fell apart because from my angel the tax credit pushed folks to write an offer but it seemed that some of those people really weren’t ready to purchase and maybe got caught up in the excitement. In fact we had 2 buyers back out of their deals because they had serious buyers remorse.
Fast forward to today. The rates today check them out http://www.bankrate.com/ are unbelievable today a FHA loan that requires a minimum of 3.5% down has a 30 year fixed APR rate of 4.669% that is incredible money. Looking at the inventory in Salem Oregon that falls under the FHA guidelines for loan amount you can find some incredible deals.
So this is clearly a strong buyers market but why are we not seeing those buyers swooping up the deals. I think it really stems from consumer confidence, it has too. The other part of it is that some many buyers were taken out of the market buy foreclosure or short sales.
So if this a perfect storm why aren’t more buyers/investors getting into the market. This article may shed some light on that. An article in last Sunday’s Oregonian titled “Oregon foreclosure rate leaps 20 percent, leaving the state No. 3 in the country” read article here. The nugget of the article and why people are on the fence is because at were we are right now in the country with housing and its tough state is because of 2.5 million foreclosures nationally, they predict a total of 6 million foreclosures will happen in the future. That really makes people sitting on the fence wonder if they will find a much better deal and it also makes buyers think what will happen to my home value if I buy now and the prices go even lower.
My only advice is that if you plan on buying and holding now is the greatest time in a long time to buy with cheap cheap money, tons of inventory and low prices you may want to take a hard look at this market.
Real Estate Investors! stay tuned for some incredible properties with government financing programs available with as little as 10% down. We are working on putting together an investor page with inventory and information on programs.
