The Present Mood of the Foreclosure Market May Spell Luck for The New Nest-builder
September 8th, 2009
Despite gloomy predictions the present mood of the foreclosure market may spell out luck for the new nest-builder – somebody who is buying a house for the first time.
A simple direct answer cannot be given whether it is the right time to purchase a unit in Central Florida. The housing slump has been going on for quite some time as the recession across the nation continues to be deep and long. The answer lies in specific personal factors and of course the predominating fear factor.
For those who own a house this is an opportune time to sell it and buy a bigger better one. But the point is that it is difficult to find a buyer for the old one. The glut will continue till another year or so.
But the situation is different for the novice buyers. The money for cash payment – a minimum amount of 3.5% required for a FHA loan – has to be ready. A conventional loan will require 20% down payment. The fees have to be added to it. The buyer must be supported by a stable job or career. If so then the road is clear and there are many options.
Chris Toadvine, a financial planner of Orlando said, “Now is a much better time than a year and a half ago. I think home prices may fall a bit further, but if I were a buyer, I would not be trying to time a bottom.”
The market is undoubtedly a buyer’s one. The prices of houses in Orlando have never been so low in comparison to the last four to five years. There are a record number of estates in the market. Hank Fishkind analyzes the real estate markets of Florida. He said, “There’s a substantial amount of inventory still to be sold.”
The gloomy picture for the sellers that foreclosed houses are still pouring into the market and pushing down the prices. But Fishkind has noted that the pace has slightly slowed down. Denise Kovach is a financial planner and opines that this is the ideal time for first time buyers to clinch a deal. She added, “As with the stock market, usually the best time to buy is when everyone is feeling most pessimistic.” They can take advantage of federal tax benefit being extended to first time buyers.
- Wells Fargo Wins Auction Bid for Foreclosed Apartment Complex in Harlem
- Moral, Social and Financial Issues Behind Borrower’s Decision to Walk Away From Foreclosures
- Foreclosures are Persisting While Price Slump Too is Continuing
- Foreclosures Somewhat Halted by Loan Modification Programme
- Experts Fail to Reach a Consensus on the Severity of the Foreclosure Crisis in New Jersey
- Foreclosures are Spawning a New Set of Landlords
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