Great week for buyers: Elections affecting the markets. Preconstruction up and short sales swamping the resale market.

Saturday, October 20, 2012

What a great week for smart buyers: everybody distracted with the election, sellers boiling in anxiety, developers competing with huge incentives and short sales swamping the market at rock bottom prices.
I haven't seen a market like this in a long time: plenty of inventory.
This historic opportunity for buyers is the result of three main events: the general feeling of uncertainty generated by both Presidential candidates, the ending of the HAFA program in December and very low mortgage rates.
In all important elections, buyers get absorbed by uncertainty and postpone important decisions, as buying a new house or moving. This time the anxiety seems to be fueled by the "head to head" situation between Mr. Obama and Mr. Romney. The truth is that nothing is going to change much for the market, regardless who wins. And the smartest buyers are right now picking the best deals without been disturbed by multiple offers situations.
In the other hand, many homeowners that bought in the last 6 years, are facing the conversion of their loans into "adjustable" loans. This force them to sell or refinance. And when they hit the market, the situation it is a little chaotic for them, because they are also competing with discounted short sales that close within 45 days and developer incentives to up to twenty percent of final price for pre-construction.
The tendency expected is even higher inventory before the end of the year, with the market stabilizing by 2014.
If you have to sell, we can help, no matter if you are underwater on your mortgage or not. Please call me at (941) 275 9111 for a confidential consultation or contact me by clicking here. Fernando Pettineroli. Listing Agent.

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