My opinion on the current Real Estate market I think it is a Buyer‚Äôs market. The average time to sell a home is 3-6 months. Buyers are offering contingent contracts and asking for substantial closing cost credits.
We are still seeing a lot of 100% financing or very little money down.
CDA and NEHEMIAH government and privately funded down payment assistance programs also require a large seller contribution. Often these programs are paired with an FHA loan as well. With the new FHA limits in our area, we expect to see more offers come in that are FHA pre-approved.
In regards to percentages of asking price vs. original list price, I think if the property is priced correctly, it should sell for asking price relatively quickly. However, if the property is priced too high, it will sell for approximately 6-10% below original list.
Unfortunately we are seeing a lot of foreclosures in our area. I receive quite a few calls a week to help sellers with ‚Äúshort sales‚ÄĚ as well. Banks and mortgage companies are willing to work with homeowners in distress, but it is not a quick or easy process.
Overall this area is still a strong market. We have BRAC housing close by, we have a very transient area between Baltimore and Washington D.C.
It is an excellent time to buy a home. Whether it be investment properties or someone‚Äôs first home. There is a large inventory of homes to choose from.
I look forward to making 2008 great!
For more regional and local real estate market updates, visit the HomeGain Blog‚Äôs Regional category.