Friday, May 09, 2008

Second testing with random commentary

Home buyers are desperate to sell these days and are more proactive - perhaps more so than realtors or real estate agents can be. A sign of the times and how desperate some home sellers are can be seen here: http://promo.realestate.yahoo.com/home-for-sale-by-any-means.html

Several real estate markets, particularly the markets hardest hit by the home sales decline such as Florida and Arizona, are seeing very high home inventories.

The problem is not in the lack of buyers looking for a good deal. The problem is credit and lack of lending. Despite a willing pool of buyers, the same buyers are faced with much tighter lending. Lenders, burned by their own excesses and careless lending are batting down on lending practices (that were in place before the boom designed to mitigate risk in the first place). The same willing buyers who existed during the good real estate times but were priced out are not finding that their credit score and the amount that they have available to put down is not enough.

The subprime disaster is forcing most lenders who are still in business to write loans for prime borrowers or nothing at all. This, despite that “subprime” technically applies to anyone who has a low credit score, regardless of actual income. Someone with a high income can still have low credit scores based on past credit history.

...And so on…

Posted by SystemAdmin on 05/09 at 10:04 PM
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