As we are seeing new highs in the stock market with the Dow reaching 19,000 for the first time. We are also seeing a decline in all cash sales in Real Estate. This is good news that are economy is actually bouncing back. It means our foreclosures and short sales are at its lowest point for the last 8 years.
I am getting asked about what my thoughts are on the market. My take on the market is that we are going to see higher interest rates and with that we will see values soften up a little bit. This is a good time for the realtors and Mortgage Bankers that have the knowledge and back ground to be able to get through this. Loan Applications are down nation wide but this is normal for this time off the year. If we are to look back at 08, and 2012 you will see that we had bigger drops in those 2 election years then now.
It's time to adjust your business model and prepare for the Questions and concerns we will be faced with from Sellers and buyers. It is a buyers market right now. Interest Rates are still low and the products available for people to become homeowners are plentiful. Buyers have no reason to wait. It is our job to point them in the right direction and to be qualified for the right product. Read the Blog below.
All-cash sales represented 31.1 of the total home sales recorded in August, according to a CoreLogic report on cash and distressed home sales. This was a decline of 1.5 percentage points from cash sales in August 2015. The company said that, if cash sales continue to decrease at the August rate, they should hit the pre-crisis rate of 25 percent by mid-2019.
Cash sales werehighest in Alabamawith a 44.9 percent share. Other states with elevated cash sales include New York (42 percent), Florida (40.9 percent), Indiana (38.6 percent) and Kansas (38 percent).
Cash transactions peaked in January 2011 at 46.6 percentof all home sales, and at approximately the same time sales of lender-owned real estate typically made up around 27 percent of the home sales market. While cash still accounts for a large share of REO sales, 58.8 percent, those sales now have only a 4.6 percent share and have very little impact on overall cash statistics.
Any questions please call me 951.756.3748 or apply on the link below and someone will contact you shortly. Robert Krowel
Thank you,
Robert Krowel
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