It's Time for a New Year and a New Attitude

Much of what's been published about recent consumer trends and confidence is very encouraging.  Even the real estate news is improving.  Car sales went up at the end of 2011, and both online and retail holiday sales were very strong, compared to projections.  Can there be any doubt that, in 2012, real estate sales will follow?

So now the question for prospective buyers is:  Do you want to be ahead of or behind the curve?  Once all the signs for improvement are in place, you know that it's only a matter of time before prices start to rise.  You also know that, due to tightening mortgage requirements everywhere, and the hurricane and freak snowstorm locally, there is a lot of pent-up demand waiting to be satisfied.  There are also a lot of folks on the sidelines, just holding off until they know that the economy is on the mend. 

Given those variables, you can put your oar into the water first, and get the best price, or you can stand still until you see other people starting to move, and then try to beat them.  It's your choice, but I think the correct answer is clear!

Signs of Life

Although the temperature still says winter, it seems to be spring in Connecticut at last! The phones are ringing, people are listing their homes for sale, and buyers are out in force. It's still very hard to keep transactions together, particularly through the inspection and financing stages, but at least we are seeing contracts being written. It's more likely to see them coming in on properties that have recently come onto the market, however, and less likely to see them on properties that have been listed for months or years. Yes, it's still a buyer's market for the most part, even though there are a few neighborhoods where the supply is limited.

We are seeing mortgage requirements steadily rising. It now takes a FICO score of 720 to get a jumbo mortgage, for example, and PMI is sometimes not available unless the buyer is putting down at least 10%. These factors make me think that buyers should feel a little more urgency; after all, it's the financing costs that drive most purchase limits.

This post will be brief, because even my phone is ringing much more, and I have lots to do!