Interim Real Estate Report (National News Oct 24, 2007)

OCTOBER 24, 2007 INTERIM REAL ESTATE UPDATE (NATIONAL):

It was announced on Oct 24, 2007 that, according to the National Association of Realtors, (NAR), sales of existing US homes fell eight percent in September. This was a higher than expected drop. As stated in my own blog: Florida Blogmentary, I believe this national drop in sales can also be tied to the recent "sub-prime mortgage meltdown." My personal opinion is that the market should "digest" this downturn in sales in the short term. (More on this later).

So, what is a seller to do? First, patience is in order. If we are honest, we should all admit that the pool of potential buyers have narrowed significantly. One year ago, buyers with a 580 credit score could get 100% financing. Now, a 640 credit score, or more, is required for conventional financing. Today, 100% financing is as plentiful as honest politicians.

Creativity: Stay open to other financing possibilities to assist buyers with financing as long as they are compliant with Housing Urban Development, (HUD) guidelines. And of course, check your motivation. If you don't have to sell, don't list your home. Yes, do not list your home. Please do not "test" the market with the largest single asset in your life. Tests are for schools, hospitals, and nuclear detonations in the South Pacific. However, if you need or have to sell, price your home according to the hard facts that an agent SHOULD present to you when you meet.

Sellers should also use this time to prepare their homes for sale if they are looking to place their properties on the market within 6 to 12 months. If you need to take out a home equity loan or refinance, lower rates maybe coming your way within the next four to six weeks as the Fed will be meeting next Wednesday, Oct 31st, and the rumor is another cut will come. Rates may go up after an announced cut, then slowly drift downward again. (Fingers crossed), if all goes well and the rates do continue to fall, more buyers should enter the market.

If you are planning to spend some money on repairs/improvements and need an unvarnished look at your property to give you suggestions on improvements and repairs, ask me for a free, no obligation on-site analysis of your property. Email me at: JTomlinson@AmerivestRealty.com

Sellers, if you take out a home equity loan, only take out what you will need to make repairs and improvements. BTW, check out one of my favorite calculators for renovating homes, CNN Money, you can use the information at this website to find out what the return on investment will be on a planned improvement on your home.

This is the 4th calendar quarter of the year. Traditionally, there is some seasonality in all markets as hearts and minds turn to the holidays instead of home shopping. Maybe a cold winter up North may bring some migratory buyers into the Orlando market, eh?

What is a buyer to do? As I have said before, BUY NOW! Inventory is up, prices of homes are down possibly to their lowest level, and deals are out there. If you have been turned down for a loan, do not stop shopping. If you are planning to buy in the next six to twelve months, check your credit report. If you need to improve your credit, give me a call for a unique program to help improve your credit score.

Don't forget to check out what my, sometimes controversial blog at http://JimSellsOrlando.com