Friday, August 17, 2007
business booming but prices have dropped
I took some time this morning to analyse several deals we have on the books ready to close. I also took into account closing costs paid and repairs made just to make the property go thru underwriting for that loan program(deducted those expenses). Here are the results:
property 1 (older home in town in good condition) selling 7.4% under list
property 2 (newer home in booming subdivision) selling 6.3% under list
property 3 (foreclosure home mentioned in earlier post) selling 17% under orig list
property 4 (nice 3 br 1 ba home in good area) selling 7% under list
property 5 (nice newer doublewide w/foundation) selling 7.2% under list
All of these are my sales. I was surprised the ratios were generally so low but I attribute that to my sellers listing their properties for or very close to appraised
Generally speaking, I am seeing a decline of about 7-10% for home prices in the Dyersburg area and I attribute much of this to the foreclosures that are driving values down.
In my opinion, we will continue to see alot of foreclosures here just because people who could not afford to buy a house were given subprime loans to purchase houses and now the expenses have caught up with them. I will have more to say(in next post) about the mortgage companies that have made all these subprime loans.
What does that mean to clients looking to buy property here. Some great deals are out there to be snatched up. A case in point is the foreclosed home mentioned above. I know 20 realtors who would have purchased that home if they knew the bank owner would have come down so low.
What does it mean to sellers of properties here? If they price their home close to current market value, they should be able to sell for around 92-93% of market value.
I am seeing lots of realtors lately in the buying mood. They know that this is just temporary and home prices will rebound.
Labels: sales up and prices down
Today, we closed on a deal in Pioneer Subdivision at a record price of $157k. And it was worth it. The appraiser came in just a bit higher than the sales price. Yesterday, I closed on a commercial property (church) south of Dyersburg (still along the I-69 route)at FULL asking price.
I think that our market is RED HOT, and I see more of the same in the forseeable future! Hooray for Dyersburg, TN!! I love the real estate business! Happy selling!
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