Bob Travers Knows Fairfield County Real Estate!

 August- Despite some optimistic developments within the market, a disconcerting outlook is beginning to materialize.  Although the market has begun to show signs of improvement, some analysts expect increasing inventory and sputtering demand to trigger a "double dip" housing recession.
     Mortgage rates fell this week to the lowest level in over 50 years and prices have reached the lowest point since 2002.  The post-tax-credit drop-off in sales is beginning to concern federal officials. The labor market holds a key to a recovery in housing and with the unemployment rate over 9.5%, a great deal of potential buyers are either out of work or worried about losing their jobs. Until jobs and confidence return, there will not be enough demand to support a sustainable recovery. Foreclosures are weighing on home prices.  According to the Mortgage Bankers Assc, 10% of all mortgage loans were delinquent at the end of the 1st quarter. It could take two years for the market to work through all the excess inventory of distressed homes.
   Low interest rates and affordable homes are available and for some, this is the buying event of a lifetime. Unfortunately, while today's housing market has created some serious deals, not all buyers are in position to take advantage of them.