At the most recent height of the real estate sales, it was easy for just about any buyer to find a mortgage. Therefore, everywhere you turned, someone was shopping for, or purchasing property. The market was busy. Open houses were packed. Construction workers had work. And now? Things have gotten very quiet.
Today, even though interest rates are falling, due to the increase in subprime foreclosures, it will still be more difficult for some buyers to secure a mortgage.In other words, today, we see fewer and fewer "no-money down" mortgages, or 100% financing for anyone other than those with great credit. While credit scoring has always been important, the number of mortgage products available for hardworking, honests borrowers will decline, making it that much more difficult to purchase a home without a significant downpayment. All of this leads to fewer buyers shopping for property.
Some say investors are feeling the effects most. In recent times, obtaining financing for an income property could be found with 5% down, and in some cases, no money down! Today, lenders just aren't willing to take those kinds of risk, leaving honest investors to come up with 10-20% of the purchase price as a downpayment.
With strict lending laws affecting them more than any other consumer, investors are finding that most of the deals on the market just don't make sense financially.
This means that overall, there are fewer buyers in the market. Thus, explaining why Sellers across the country are frustrated, and waiting.
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