[quote=thebreeze][quote=sdrealtor]Sorry but most of the CV buyers have 20% down or more. The truth is most of the buyers out there today that I am seeing do. I am sitting on a pile of listings and get offers on a daily basis. It is rare that I get an offer with less than 20% down these days. I also have several buyers looking and all but one has 20% or more.
There is alot more money out there than you all think around here. There are also a ton of folks who sat out the last few years waiting for prices to fall or who were priced out but not anymore.[/quote]
Imagine that. A realtor talking about how strong the RE market is. Never thought I’d see the day.[/quote]
Haw – “Now is a great time to buy or sell a house”
The reason buyers have 20% down: 5% down buyers cannot get financing.
sdrealtor is just doing his job, being himself. Interesting anecdotes, for sure, but the only really useful data is in the aggregate.
I drove around Cardiff today looking at houses. There are for sale signs everywhere.
Most CV houses I look at are heavily financed. This is actually a significant disincentive to considering leasing these houses. I fear the owners will give up and stop making payments when they become underwater.
The wealth destruction is in process. The bigger factor, though, will be the drop in confidence, particularly as layoffs start to impact the local economy. Also fear a jump in long bond rates in 2009, which would translate to higher mortgage rates. The U.S. government has a lot of debt to sell.
The other thing to fear is a paralysis of the market, perhaps resulting from a foreclosure moratorium.
This is gut wrenching – I have the cash to buy the house, but am ever so nervous!
