Real Estate is really seeing a change. It has been overwhelming these past few months just trying to keep up with everything that is going on. Texas (at least my area: North Tarrant, South Denton) is no longer seeing a buyers market in the smaller houses (under $150K). There are just too many buyers. These buyers are trying to take advantage of the first time home buyer tax credit. In the past few months my partner and I have worked with numerous buyers in this price range. They are consistently competing with multiple offers. The good homes are going fast. It has been a very hard market to understand. While the foreclosures and short sales are very heavily on the market they are not going as cheaply as expected (and are taking months just to get a response due to the number of multiples they are competing against - we have one that is approaching three months of waiting on a short sale just to hear if the bank took their bid or one of the five offers they were competing with). And as a Real Estate Agent this has also been a challenge to educate these new home buyers into understanding the current market conditions. Since everyone thinks it is a buyers market (and it was, but unfortunately in this price range that has changed). And everyone thinks the banks are anxious to sell (they might be but take months to do it - this is becoming the norm and not the exception).
Not only is the market itself going through a transition but so is the banking industry. And even though many of our buyers have come in with pre-approval letters they have met problems in getting a loan to make it to closing. Mortgage companies are taking about 45 days to close if the buyer has no problems but with problems it could take much longer (we currently have a closing that is approaching over 2 months to get to closing due to mortgage delays).
Real Estate agents are also going through a transition. There are less agents out there. Numerous offices have closed. And there are fewer homes being sold. The sellers agent is having a harder time making money to survive. Buyers agents are also working three times as hard to get an offer to closing. Leases are hot but for an agent they can cost more out of pocket than the agent often makes. And trying to stay educated on all the changes and possibilities a seller or buyer can run into has become difficult. Every short sale is different, and every foreclosure is different. The banks often have their own forms and their own set of rules. And trying to decide who is capable in buying a house whether you represent the buyer or seller has become a big challenge. Numerous houses are sitting on the market and to get them sold it is taking a strong marketing plan (not just a price reduction as numerous agents tend to think). Just putting a house in the MLS is not enough. Agents really need to think outside the box to get houses sold.
I continue to expect more changes to come as this year continues. If nothing else it has not been a boring year. Transition may not be fun but at least it keep us on our toes!
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