Bob Travers Knows Fairfield County Real Estate!

     The housing sector is entering the final phase of a substantial correction.  Tighter underwriting by the credit markets that hurt would be buyers from obtaining mortgages could soon loosen up. Regulators for Fannie Mae & Freddie Mac cut the capital requirement to 20% to help revive the home-loan market. This will add $200 billion of immediate liquidity to the mortgage-backed securities market.
     Inventory levels of homes for sale are way up and price reductions are frequent.  Market time has increased and new construction is slowing, all signs of a typical buyers market.  The recent pounding of negative media hype is adding to real estate woes as well. Slow to recognize the change in the market in 2005, the media is now going overboard to add fear and will continue to be a wet blanket on any market recovery. Expect to hear about the bottom of the market about 8 months after it happens!!!
     Smart sellers are finally accepting the new market reality...pricing is the key to selling a home in a buyers market.  There are some very good buys on the market right now.  A seasoned, experienced broker can help you find these homes. Using a real estate agent who is not familiar with the market no longer makes economic sense...at least to the buyer.
     Sellers should consider sprucing their homes up if they are planning on selling to make them as attractive as possible to buyers. And buyers should weigh the price of buying a home now with a lower mortgage rate against the prospect of paying less for a home but having it cost more later.