I know this will sound, like such a cliché, I mean who hasn’t heard that real estate is about: location, location, location. I mention location and price range as a mantra in so many posts that I realize it must get a bit tiresome. Nevertheless, it remains a truism no mater your whereabouts. E.g., just note the market dynamics in this previous post where I found both buyer and seller mini-markets coexisting simultaneously.
Current national market conditions have complicated Lender requirements for mortgages and the types of loans available are dynamic. Huntsville area mortgages have been affected by national market conditions. Yes, with good credit you can still pull off a zero down mortgage package. I had a client a few weeks ago who was a first time buyer and they successfully obtained 100% financing. However, qualification requirements have stiffened and are dynamic within many mortgage companies and Appraisers hired by these Lenders are also feeling the pressure. Lenders are simply more cautious in a slower market and this caution flows downhill.
While macro economical issues affect the general market, the pricing of homes just one neighborhood apart for essentially the same sized house can vary greatly. The lesson for Appraisers and Realtors alike is to become an expert in your local market and don’t spread your territory too widely else we run the risk of diluting our knowledge and thus potential. For buyers and sellers it is more important than ever to work with a qualified Realtor. Thus this recent excerpt from the May 3oth Chicago Tribune highlights this need for us all.
The bad news is that even appraisers and real estate agents are having a harder time discerning a home’s worth. The old rule of thumb, that houses appreciated 3 to 5 percent annually, no longer applies, although there are areas where home values have remained stable. “You can’t deal with national and even area statistics,” said Hal London, president of Key Appraisals, Park Ridge. “There are certain pockets of neighborhoods that are holding their own. Even in a given neighborhood, you can have different markets on the same street.”
As always don’t hesitate to contact me if you have any questions or better yet just give me call 256-425-1659.