If you’re a consumer, this is not the time you reach for a crystal ball or cross your fingers. In 2011, you will have to be more clever and much smarter. It isn’t like it used to be a decade ago when potential homebuyers were at the helm of the financial ship. There will be some unusual real estate and mortgage trends popping up, so beware.
Trend #1 – If you’re a cash buyer the red carpet will be out from both lenders and realtors. Actually, at the tail end of 2010, there were more cash buyers than any others. No mortgage lender excuses or “sorry, Mr. Jones, you’ll have to come up with 20 percent down to avoid PMI,” conundrums.
Trend #2 – Jumbo mortgage applications and sales will blossom, and the interest rate scale will still remain very attractive. All this is good news for consumers with a FICO score on the north side of 725 and a good job.
Trend #3 – Oops. There does appear to be a dark cloud out there for both buyers and agents. No more three weeks or less for closing deals. 60 to 90 days will be the norm. Rate locks should reach out as far as possible.
Trend #4 – In 2011, stable rates and tons of available homes will let consumers make choices.
Trend #5 – Foreclosure trends will still continue. Informed real estate agents can help.
For more information on real estate trends in 2011, please call me.