As we move into the 4th Quarter, many prospective home buyers are beginning to realize some important facts about the Memphis market:
1. Prices haven’t tumbled. Many, many homes have had prices reduced, and in the areas I monitor a number of listings expire and are not renewed. This indicates that sellers would rather hold on to their homes than lower prices to the point of getting offers. If sellers truly HAVE to sell, its a good time for bargains. New construction may be the best place to get a deal. Overall, can you get a better deal on a home than you could a year ago? Yes. Waiting for the bottom to fall out? Its not going to happen.
2. You can still get mortgages. If you could qualify for a conforming loan a year ago, you probably can still qualify now. And with interest rates hovering around 6% for conforming loans, mortgages are a deal. The days of qualifying buyers for mortgages when their credit didn’t qualify them for a Discover Card are over. Also note that Jumbo loans (over $417,000) are generally considered riskier and demand higher interest rates.
3. There is a huge amount of good inventory. There are over 12,000 residential listings in the Memphis area. Plenty of choices in all types of properties.
4. Foreclosures. HUD-owned, and Bank-owned inventories are high. Neither HUD nor the banks want to carry real estate inventories. While some special expertise is necessary, there are deals to be had here. This is a market sector that should not be overlooked by home buyers and investors.
Buyers, this is not the time to have your heads in the sand. It is your market!
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What do you think? Leave your comments.