A Great time to Be in the Real Estate Market!

There is a statement you probably haven't heard very often! All we hear on a daily basis from the media is the doom and gloom! "Foreclosures are at an all time high!" 'Mortgage lenders are folding daily!" "Freddie Mac and Fannie Mae may be insolvent!" "The world is coming to an end!!" O.K. enough with the melodrama. Yes these things are happening in todays housing market, but is this really as bad as it sounds? Nope! The market is correcting itself from poor business practices and choices of both consumers and lenders...and maybe even a few REALTORS! What does this mean to you if you are getting ready to enter the market to buy a home or...gulp...sell your current property?

First, if you are looking at entering the market to buy a home or investment property there are some things that you have to do first! Go out and buy a bottle of champagne because it is definitely going to be a party for you! Foreclosures are on the rise along with short sales(will explain short sale later I am on a role right now) these, along with the increasing number of homes entering the selling inventory has put tremendous downward pricing pressures on sellers. Basically home values have declined significantly from a high of about 18 -24 months ago. Why has this happened! That is an article for another time..but it has to do with a large number of speculators off loading inventory, home owners selling for typical reasons, and lending guidelines (as the result of the sub prime meltdown) have eliminated many folks from the market who previously qualified for a loan. Any way, the result is, there are a ton of homes out there to choose from and prices have come down. Believe it or not there are still lenders out there who are actually underwriting mortgages! You can get a mortgage! Requirements for loans may have tightened but we have seen a huge up tick in government guaranteed and insured loans such as VA and FHA. With home values falling, many of these homes are now eligible under FHA and VA lending guidelines. So take advantage of this time. We are at the bottom! There is no where else to go but up in most areas. Especially here in Jacksonville.

Considering selling? It is still a good time to sell your home! Yes that's right I just said what you just read! If you are considering selling your home but feel like maybe you will wait a year or so until the market comes back. Comes back to what? The most astonishing real estate market we have seen in over 40 years! I don't think the market will come back to that level in a very long time. Believe it or not homes are selling. If you have equity in your home consider yourself a lottery winner! You can sell your home for a strong price and in a reasonable period of time. You may have to be willing to help buyers with closing costs, or buy some points on their loan or offer some other incentives but your home will sell. I know what your thinking! What if my home does not have any equity! What if I am one of those people who bought at the height of the market with a %100 loan and now you are upside down in your home. There is still hope for you. I strongly encourage people who are in this situation and who have a legitimate reason to sell their home(job, military, divorce, etc)to contact their lender and discuss options. Lenders are willing to assist home owners with issues. I have heard stories of lenders adjusting interest rates, reducing principal etc. Never keep your lender in the dark with your situation.
If you have fallen behind on your mortgage payments...you can still sell your home, even if you owe more than it is worth. This is called a short a sale. When the principal balance of the loan is higher than the current market value of your home. You can avoid foreclosure! Contact your lender to explain your situation and ask for a Short Sale Application. In most cases lenders are agreeing to sell homes for less than the principal balance of the loan. If you would like more information about short sales or the value of your home call or email me or visit my website http://www.mattsellsjax.com/

This market will recycle around in the next 12 - 18 months. We will get back to a normal cycle again. So please remember that when you hear the medias doom and gloom...understand that they know if it bleeds it leads! Keep your head up and jump into this market ... the water is great!!