Ever since the Federal government decided that it needed to subsidize home ownership, we’ve been heading for the bubble.crash. And it hit. Big.
Now we’re waiting for the bottom so that we can begin to climb our way back to positive ground.
I have seen two pieces of good news:
- My neighborhood Realtor has sold 2 properties on the street in the last couple of weeks. Sellers are internalizing the new prices and buyers are responding by, well, by buying.
- This story about a first time home buy in Minneapolis:
Jessica Harrison thought she knew what to expect when she decided to look for a house: a buyer’s market.
And why not? Prices are down sharply since 2009. And with so many foreclosed properties for sale, Harrison was certain she would find a good deal fast.
Instead, the Minneapolis teacher waded through countless homes during what became a two-year search. Most needed too much work. When she found a move-in ready house, she lost out to bids she couldn’t match. Harrison tried to buy a home through a short sale, too, but the deal fell through after six months.
She finally reached a deal on a tidy house in south Minneapolis and expects to close at the end of this month. “There were multiple properties available, but I wanted to get a house that I could move into,” Harrison said. “A lot of the houses needed a lot of work, and I didn’t have the money or resources to do that.”
Home buyers can no longer assume that it’s easy to buy a cheap house in a good location. New local listings are down 17 percent in the Twin Cities over the past year, as would-be sellers are holding on to their homes until the market improves. “[Buyers] have to be patient until the right home comes along,” said Ryan Haagenson, a sales agent with Re/Max Results in Minneapolis. “And ready to pull the trigger when it does.”
Make no mistake: There are still more sellers than buyers. But the decline in listings and the quality of the options are slowing the search for those on the hunt. U.S. home listings in September fell to a four-year low, according to Realtor.com.
For whatever reason, when the supply of homes goes down, the price goes up.
We’re certainly not out of the woods yet, we still have Obama and the Democrats stalling foreclosures and incenting people to buy homes. But we’re closer than we were last week.