Back in March, I blogged about whether home buyers should buy now or wait for further declines in home values and how interest rate increases could price a home buyer out of the market. A economist with Stewart Title provided a scenario where some home buyers would be priced out of the market if they waited to purchase a home until the home values declined another 10%. Well, that time has come.

Interest rates have shot up 1+% in the last couple of weeks and now buyers that were qualifying to purchase homes priced in the $105,000. range now qualify in the $90,000. range. It was hard enough to find homes priced at $105,000. but $90,000?

I currently have 3 buyers who have offers out there on short sales. These buyers have been patiently waiting (months) for the seller’s lender to respond with an answer to their offer. Now, none of these buyers will qualify for the homes they’ve made offers on even though when the offer was made, they were pre-approved for the homes they made offers on.

I look at all of the short sales in our multiple listing service that have offers on them and wonder how many of them no longer have legitimate (approved) buyers on them. My guess? Most of them.

Posted In Blogroll, Real Estate Info

This entry was posted on Friday, July 3rd, 2009 at 4:13 pm and is filed under Blogroll, Real Estate Info. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.