Over the weekend there were an unusually high number of inquiries for my listings, regardless of price-point. A situation that I am confirming with my colleagues that is becoming increasingly common for buyers in the 500K+ range is that since these buyers typically need Jumbo Loans (over 423K/FHA max.), they are having a harder time getting approved than in prior years, or they do not have or simply do not want to invest the typically required 20% down. Whatever the case, I am optimistic that this up tick in consumer inquiries will continue for a number or reasons:
-The stock market has shown some positive signs
-The current administration has unveiled a comprehensive plan to reduce the rate of foreclosures, thus reducing the volume of inventory coming on the market
-The $8000.00 credit for first time buyers means that those (first home sellers) will now be looking for their next home (typically 450-650K).
It's important to note that the positive psychological effect of a perceived multi prong approach to our current housing woes is more important than the actual initiatives themselves. We continue to be a consumer driven economy, so positive consumer sentiment is paramount.
This is not to imply that we are at the bottom of our present market cycle, yet these conditions are starting to foster the "perception of value" that this market has long been missing since 2006.
Full steam ahead, I say!
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