A buyer wrote in with questions about making an offer on a townhome. She made what seemed to be a reasonable offer, based on comparable sales and the sluggish nature of the housing market. The seller countered with a price that was lower than the original, but still higher than her offered amount. What should she do next?
Do you think home prices in your area will hit bottom in 2011? We asked that question of our website visitors recently. More than 1,700 of them responded, which gives us a pretty solid indicator. Apparently, people aren’t very optimistic on the subject. Nearly 80% of respondents felt that prices would keep falling.
U.S. home prices fell by 3% over the last quarter, marking the largest quarterly decline since the housing market first collapsed. It’s a familiar problem with supply and demand, but it’s more persistent this time around. There are too many homes for sale, and not nearly enough qualified buyers to absorb the inventory.
Freddie Mac and Fannie Mae used to be government-sponsored enterprises (GSEs). But not they are actually managed by the government, following a seizure that took place during the recession. These organizations largely determine the borrowing criteria for mortgage loans. So it’s noteworthy that they are talking about a 10% down-payment requirement.
Is now a good time to buy a house? This is one of the most common questions we get from readers. It’s also a question that cannot be answered with a simple ‘yes’ or ‘no’ across the board. So we’ve created a Venn diagram to show the overlapping factors that need to be considered when answering this question.
Like most Texas cities, Houston avoided the the real estate speculation and pricing bubbles that affected other major cities in the U.S. So it was somewhat shielded by the effects of the housing market crash. Given this history, it’s no surprise that this market is so stable right now, compared to the rest of the nation.