tag:blogger.com,1999:blog-23316679151196014602011-11-27T16:42:44.643-08:00Pure and simple, this is just different posts about my ideas on the local market, etc. It's also an area to discuss local happenings, even if they aren't real estate related. Don't worry, it's not going to be a "pick me pick me" blog like most of the other real estate agent blogs you see.Brad Hollyhttp://www.blogger.com/profile/07267148783456601836noreply@blogger.comBlogger11100tag:blogger.com,1999:blog-2331667915119601460.post-80840453038564854462008-11-12T15:51:00.000-08:002008-11-12T16:12:53.346-08:00I receive a daily email from the <a href="http://www.realtor.com/">National Association of Realtors </a>with different news stories related to the real estate market. Most of them are about different ways to market ourselves, or about happenings in Washington and how they affect the real estate industry. There are also stories about statistics and trends and I found the following one rather encouraging!<br /><br />The brief synopsis is that first time home buyers rose by about 2% for the year ending June 2008, which was up 3% from the year ending June 2007. It also stated that down payments rose from an average of 2% to 4% and that "No money down" loans fell from 45% to 34%, which is a substantial drop.<br /><br />These numbers can be looked at many ways, but here's what I see. First, in a very tough market considering the oversupply of inventory, severely tightened credit, and just general uneasiness of the economy, more first time home buyers still chose to enter the market. One reason is the deals to be had. With an oversupply of inventory, price have fallen around the country and are enticing those first timers to take advantage.<br /><br />I also see positive in the down payment increase. Granted, 4% isn't a substantial amount, especially given that markets conditions could erase that in a short amount of time. What I do see good about that is that it means that more first timers are also being more responsible in saving up more money for a down payment. Yes, credit tightened and some loans may require higher down payments, but many first time home buyers are getting government backed loans anyway, meaning the credit market hasn't affected them as much. At the height of the buyers market, anyone was getting a 100% loan and some of that is what's contributing to the market being where it is now, those that shouldn't have. <br /><br />The other interesting statistic is how 100% loans are down about 11%. Obviously as a real estate agent, I want anyone who wants to buy a home to get a loan, but realistically, if that happens, we will stay in this mess a lot longer. In addition to all of the bailouts, and lenders rewriting loans, we need to see more solid home buyers entering the market, assuring that a few years down the road, we're not going to be hit with another glutton of foreclosures.<br /><br />Another positive side effect is that since most first time home buyers tend to enter near the bottom range of the housing market (price wise), it frees up those homeowners who are interesting in upgrading, or relieves the market of some foreclosures, etc.<br /><br />Seeing the 100% loans drop 11%, down payments increase, and first time home buyers increase, I believe that we are laying the foundation for what will be a slow, drawn out recovery, but one that will ideally have good roots, and more importantly, happy homeowners.<br /><br />The full text of the article can be found <a href="http://www.realtor.org/RMODaily.nsf/pages/News2008111004?OpenDocument">here</a>.<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/2331667915119601460-8084045303856485446?l=bradsreyammerings.blogspot.com' alt='' /></div>Brad Hollyhttp://www.blogger.com/profile/07267148783456601836noreply@blogger.com0