Happy almost May!

Our weather here is still stuck in spring mode. I’m hoping it will get warmer soon, but who knows. My Web cam is still screwy. Time for a new computer, says my wife. A Mac!

What I do know about is how busy things have been. People are clued (or have clued, as this is the last day, wait, is that even a word?) into the tax credit, and Sellers and Buyers have sharpened their programs to get stuff moved. In fact, lots and lots of stuff has moved, though if you thought you were going to offer on a short sale and make it under the timeline, you woefully misjudged.
Last month, all eyes were on the quality of the inventory, and I have to say, there were some very, very nice properties that came (and went) to and from the market. We have written a number of deals that will qualify, and some of them have been very good bargains.

Lending and underwriting has also improved, and we are back around 30 days for a deal, perhaps a touch longer. Buyers have returned, however gingerly, to a position of “risk-taking” given they are well compensated, which is an improvement from a few months ago, where a buyer asked for such a discount as to make the purchase almost failsafe.

This STILL doesn’t mean prices are going up anytime soon. All the short sales that have gone under contract will only lead to a fresh set of underwater houses to come on the market. I suspect we’ll have a version of this for about the next year. I would have said two, but I’ve been really surprised at the speed that last batch cleared the market. They will have a dampening effect on the market however, especially in sieverkropp and the Westside addition near fox hollow.

The majority of the action is well under the $400,000 range, but some of the Summer buyers are coming up early to get a jump on things. I’ve gone from showing piles and piles of property under $300,000 to a bunch over $400,000 in just the last week. That’s a decent sign.

I’ve been noticing that as the market re-forms, there are different players this time around. I’m also noticing, that while conditions improve for some, hurt, and duration, and general stress abound…..There seems to be a lot of it in transactions these days…..

So, short term outlook? Weak until memorial day weekend, given the tax credit hangover and the upward pressure on interest rates. Probably a little firming through the summer, with what appears to be decent amounts of inventory clearing, and softness in the fall, firmed up in late October by the bargain shoppers, depending on interest rates, which could be the big, big uncertainty….
I’m always amazed by people who dare to wait until the last moment…..nerves of steel those people…..