 |
ON THE MARKET
Newsletter Archive
|
Welcome to ON THE MARKET – November, 2007
A free newsletter from Hal & Jean Ward, Associate Broker and Sales Associate, Coldwell Banker Preferred Properties. www.centralutahhomes.com
Click here to subscribe.
Recovering from a bleak summer market, both the buyer and seller markets appear to be stabilizing. It's good to feel 'normal' again.
Many local lenders, appraisers, and Realtors felt that the sudden upswing in prices over the last 2 years was not 'sustainable.' Other lenders and Realtors encouraged creative financing and high prices, thinking the good market would last indefinitely.
Some credit for the confusion in this summer’s market can be given to:
a) Some lenders who think only of their profit,
b) To some appraisers who don’t always adhere to sensible guidelines and who can be ‘bought and paid for’
c) To some Realtors who are new and/or unskilled in helping sellers prepare their properties in price and condition for current market. A good sale requires attention to both factors.
d) To the wild ride in the sub prime mortgage industry and resulting meltdown, and the pull back by investors who buy mortgage backed securities. This will likely continue to scar the mortgage and related housing industries well into 2008.
The result by summer’s end: total confusion among buyers and sellers as they wondered who and what to believe. Some sellers did walk off with nice profits during the past 2 year flurry, especially those whose properties came on the market before any signs of weakening and were in A+ condition. Other sellers still sit with unsold properties.
The good news: the foundation of our mortgage and housing industries will likely hold, the calvary is coming (maybe with limited weapons) and all involved in the mess will nurse their wounds and bounce back (hopefully with a good memory of what can happen when greed sets in.)
The bad news: many homeowners will continue to be displaced in the process of the industry bouncing back. In our area, this could keep market prices a little low but hopefully stable, over the months ahead.
The market surprise this fall comes in only one sector: farm and ranch land.
Prices have gone up, stayed up, and demand continues to be excellent. Don’t expect to see any bargains in this sector of the market in the foreseeable future.
Building lots or land holdings should be a valuable asset in the years ahead.
Sign up for free email newsletter about the Central Utah Real Estate market
|
|
|
