News on the housing market seemed to be the hot topic at the office and with good reason. Today, with new home sales and existing home sales dropping, many are wondering what’s next. Whether we are in a recovery slowdown, a double dip, or still in the recession, a rebound in the housing market is considered key in the overall economic recovery. What’s more, the housing market is dependent on employment and availability of financing.
Unlike stocks, home prices don’t fluctuate daily with recent news, the latest closings or new listings coming to market. However, some sellers may lower their list price based on today’s news, which could spark other competing sellers to do the same just to remain competitive. Optimistic list prices could slowly become more realistic of the current market and in turn adjust prices, become situational landlords, or further extend their stay and no longer sell.
Unemployment in IL dropped -0.1 pts to 10.3% and job security still a major concern with many. Some purchases also cannot be financed as well for many reasons (non-warrantable, purchase price, condition, etc,) leaving only cash purchasers as viable options. Those able to secure financing or have cash are able to pick and choose from inventory, leverage their purchases and enjoy low rates. So what are they purchasing? Foreclosures seem to be an obvious choice but not what I had in mind. I will discuss this prevailing trend in a future post.
Sherwin L. Sucaldito, REALTOR®
Member of The Institute of Luxury Home Marketing
Member of the Real Estate Buyer’s Agency Council, ABR
Certified Residential Property Manager, CRPM