Tuesday, April 26, 2005


Dyersburg real estate market conditions up to 4/26/05

The Dyersburg market has seen a 180 degree turn in market conditions over the last 18-24 months. Back in early 2003, it was very hard as a realtor to sell many of the homes on the market. There was an average of 500 homes on the market then. One of the contributing factors to the high number of homes for sale then was the health of the factories in and around Dyersburg. We had several factories close and several to scale back and/or lay off workers. Factory workers probable make up about 30-40% of our housing demand. It was definately a buyers market in 2003 and 2004.

Beginning in 2004, area factories began to recover and to start hiring workers instead of laying off workers. Consumer confidence in Dyersburg picked up when the job market picked up. With this improvement in both areas, the real estate market took off. The average 500 homes on the market started dwindeling. What began as a strong buyers market in early 2004 became a soft buyers market by the end of 2004.

With the presidential election behind us and consumer confidence on the rise, the Dyersburg market is red hot. We have shifted from a buyers market to a sellers market with all price ranges selling. Now, more than ever, it is important to employ the services of a realtor that knows the market. Homes that hit the market within 2% of actual appraised value are being snatched up by savvy buyers that are listening to their realtors. It only takes a couple of missed opportunities for the buyer to see that the realtor is telling them the truth about the market.

In about 2 weeks or so, I will discuss current financing trends in the Dyersburg market so please return for that information.

I sense that most buyers are coming to the table with a need for help with some portion of their financing. Should the well-informed seller plan to provide closing costs for his buyer on the front end and offer that as a selling point?
Most buyers for homes under $100,000 need help with closing costs. It is almost a given in todays market. The reason for this is because the last 3-4 years have been very difficult for the blue collar worker in the factories. Many have been through lay-offs and slow downs. Many have been able to preserve their credit rating but not their cash.
Mike, I am enjoying your blog. I wanted to respond to the question from lauralou44. Most conventional loans allow the seller to pay up to 3% of the buyers' closing costs but not prepaid items like homeowners insurance or funds to set up the escrow account. In this case the sales price needs to take into consideration the amount that the seller is willing to pay. We have a loan program that allows the financing of the closing cost ABOVE the purchase price as long as the total loan does not exceed 102% of the appraised value. In this case, the sales price does not have to take closing costs into consideration (unless the seller simply wants to make the deal more attractive). There are many ways to structure a loan to get the buyer to the table with minimal cash.
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