Salt Lake

Stress tests are in; ten of the nation’s nineteen largest banks will need to raise a total $74.6 billion Incapital. The stress test revealed that banks like Goldman Sachs and JP Morgan seemed to be better positioned than CitiGroup and bank of America. At this point, according to Kiplinger, “the stronger banks will actively do what they can.”

To return any money borrowed fro the government to get out from under restrictions on dividends and executive compensation. Their ability to sell common stock to investors or raise capital with so-called mandatory convertible preferred shares which credit will continue to be tight for awhile on a brighter note, however, the real estate sector of our economy continues to show some positive signs- a good symbol that the programs that the government has put in place are helping. USA reported, “more homes for sale are attracting multiple offers as buyers pursue lower price homes and banks low ball asking prices to attract competing bids on foreclosures.”

It is exactly what we’ve seen locally, first time entry level home buyer market is fueling this recovery. It’s something that Coldwell Banker forecasted and it’s finally coming to fruition now lets take a look in my expert market area; salt lake city area our salt lake office reported that sales are strong as buyers are gaining confidence in the market and seeing many of the buyers taking advantage of the stimulus grants for the first time home buyers and the state home run grant. With the inventory shrinking we are seeing multiple offers that are closer to list price stabilizing the market. An estimate 20% of our sales are currently short sales or REOs and as this inventory is removed from the market we should see prices start to rise in the coming months. Coldwell Banker Union Heights office is reporting more activity Wach week. There is increased activity in almost all price ranges. Our sugar house office reports that the market seems to be steadily picking up thanks to low interest rates. Buyers are starting to jump off the fence. We may see more investor activity with the new home path loan. Spread the word…no pessimism allowed…the market is changing….we will recover !!!!

Tags: Buyer's Market

Posted on Monday, May 18th, 2009 at 12:49 pm and is filed under First Time Home-Buyers. 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.