El Dorado County Real Estate Market Forecast - It is All Doom and Gloom!!

May 27th, 2007 categories: El Dorado County Real Estate, Mortgage & Finance

El_Dorado_County_Real_Estate_Market

Or is it?

We have gone through quite a lot of up and down forecasts of the El Dorado County and Amador County real estate markets over the past few years. For several years, forecasters were predicting the burst of the real estate market “bubble”, as it continued to grow by leaps and bounds.

They said it would burst and insinuated that every real estate investor, as well as buyers and sellers of homes for sale would lose their shirts. While prices have deflated in most areas in the past year, there was never the doom and gloom “burst”.

Investors Will Lose Their Shirts

There are many investors of residential homes for sale, who now find themselves in foreclosure, will probably lose a lot of money, and will suffer a less-than-favorable credit rating because of it. Quote

Many of these investors used the “no money down” and/or “get rich quick” financing schemes. For these unfortunate investors, that is the risk they took by investing in residential real estate under those financing terms. They may be forced to take a lot less money for their homes than they originally planned. They are the real victims of the market bubble, not the average homeowner. However, the market is getting better much sooner than anyone expected.

What has occurred is nothing more than the natural cycle of the real estate market. Currently it is transitioning from a “seller’s market” to a “buyer’s market”. Not the bursting bubble that many headlines claim today. Current fixed-rate, 30-year mortgages have interest rates no higher than in June 2004. They averaged 6.2 percent during the last quarter of 2006, which is well below the average ten years ago.

Homes for sale in most areas remain affordable, according to the National Association of Realtors. They report that income growth has kept up with rising prices, allowing a median income family to be able to afford median-priced homes for sale.

These facts are like rays of sunchine on a cloudy day. Hence, it is not ALL doom and gloom. In fact, it’s great news for qualified buyers! With the recent forecast of the sub-prime mortgage meltdown and the tightening up on lending practices, you may be asking, “Well then, what exactly qualifies a buyer as a ‘qualified buyer’?”

Simple. There is one rule of thumb that has stood the test of time in mortgage lending regardless of the market. Credit score, credit score, credit score.

If you have a good credit score you will be viewed by lenders as being a responsible borrower. Which in turn, will qualify you for a loan based upon your annual income.

Buyer’s… now is your time! If you are unsure of where your credit score falls, call me for a free credit report and analysis. I will be pleased to evaluate your report and counsel you in repairing your damaged credit if needed. It is my personal goal to put you and your family into the best mortgage possible.

For what it’s worth, this Mortgage Broker is predicting brighter days ahead.

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This entry was posted on Sunday, May 27th, 2007 at 12:00 am and is filed under El Dorado County Real Estate, Mortgage & Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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