I've recently begun working with several new first time buyers looking to take advantage of the tax credit. It's nice to know this section of the market is still active and engaged. If the tax credit had been available to more people, even if just for a limited period, just think about what this could create?
As a result of the government pushing FHA loans, the already limited FHA certified appraisers in our region have become so busy our financial commitment dates must be extended back sometimes 2 more weeks. FHA's ability to process the loans in time for financial commitment has also needed to extend, as more jobs are created to fill the gap and help things run smoothly again. I'd say this is a great sign and something long awaited by many.
I get asked all the time "How's the market?" and often find people are most interested in hearing the numbers. Today I put together a comparison over 3 years during the same 30 day period to demonstrate just what's happening in this market:
5/8/09 to 6/8/09, 51 closings in Cheshire County (residential only), Average days on market = 186
Average selling price = $210,793
5/8/08 to 6/8/08, 67 closings in Cheshire County (residential only), Average days on market = 130
Average selling price = $282,111
5/8/07 to 6/8/07, 71 closings in Cheshire County (residential only), Average days on market = 180
Average selling price = $263,938
Today, 6/8/09, there are 96 pending residential properties in Cheshire County. The average days on market for this group is 84 days! Though not all will close, the market has shown an upswing of properties going under contract recently. One interesting figure to compare is the average LISTING price of those properties is approximately $184,000.
Big drop in price, but as long as they are still selling! The new appraisal process is going to slow down the people that have more than 3.5% to put down too. Keeping those FTHB informed about the tax credit is going to be a huge factor. Just imagine if it could be used for the 3.5% down, or even a portion of it! That would be great!!
I'm finding the most challenging parts of current transactions are all the added steps and processes affecting buyers, lenders, agents, appraisers, everyone generally.