Tuesday, March 24, 2015

The Spring Real Estate Market is Here . . . are you ready?

Every year, beginning about Valentine's Day, the buyer market activity begins to pick up and runs through May.  This period is oft referred to as the "Spring Buying Impetus." You know how it feels . . . the sky is blue, the air is crisp, the sun is shining, and everyone feels "frisky."  But this year has felt like Seattle weather -- cloudy, rainy, overcast, foggy, very little "peek-a-boo's" of the sun, which has produced an overwhelming feeling of malaise.  It has slowed down the market.

But beginning Sunday afternoon, the sun came out and it's starting to feel good!  Buyers are looking -- sellers are calling, despite the report from Realtor.com that the nationwide market inventory is down 11% at the start of the spring market!  Wow, what's causing that?

Basically, it is the over-regulated mortgage market, making it difficult for anyone to get a mortgage.  I read a blog that talked about how poorly designed the mortgage business really is, suffering from lack of technology and overburdened by government regulations.  In other words, when the market declined from about 2008-2012/2013, government reaction was to "tighten" credit underwriting to make it very difficult.  And beginning August 1, 2015, it will be worse.  Lenders will have to get their closing documents to the title companies 3 days before closing.  That's right, no last minute, pull-it-together closings.  Those are going away, forcing more pressure on the lenders.

It's going to frustrate buyers and sellers, as it already does waiting until the last minute for most closings.

Still, there are lots of viable options in the marketplace -- whether buying or selling.  So hook up with your REALTOR* and get in the game.  Real estate (ie your home) is still your best hedge against inflation and your best investment.

*Need a good REALTOR?  Call The Sam Team at 832-200-5656 . . . as seen on TV!  lol