Higher Priced Homes Staying on the Market Longer
The April 2009 Market Update Report from the California Association of Realtors indicates that listed homes in California priced at $1,000,000 and over are staying on the market much longer than the lower priced homes. In my personal experience I know that these higher priced home buyers are having a difficult time getting approved by the banks for mortgages. While we are seeing multiple offers in the $500,000 and below priced listings, it seems that the availability of mortgage products for buyers in the higher end range is inhibiting activity. In the past few weeks as interest rates have climbed I have had buyers put their viewings on hold to see what is going to happen. AndI have buyers who are now trying to get more creative with their offers by asking sellers to pay the closing costs and to buy down their rate. Have we hit the bottom? No one knows. However, if you can jump into the market while interest rates are still at historical lows you will have a better chance at qualifying for a really terrific property.