Is the Financial Crisis Affecting Local Real Estate?
Now that the financial crisis is two weeks old we offer these insights:
- Re real estate lending, reasonably qualified buyers are not having a problem obtaining financing, especially from the larger stable banks who have been lending responsibly in our area for years (Wells Fargo, Bank of America). Many overly negative news articles are stating that there is an industry-wide shut down in lending. Not true.
- Buyer demand has weakened as their confidence in the economic future has eroded. Homes are seeing fewer offers and sellers have to negotiate.
The good news: Homes are still receiving offers and closing escrow, if they are properly priced, marketed, and negotiated.