Barb Schlinker The Real Estate Voice

Signs of This Hot Real Estate Market Softening – Has it Topped OutSegment 1For months now we have been talking about this red hot real estate market and whether or not there will be some cracks in the demand?It is starting to level off for several reasons:Fewer buyers are seeking mortgages – down by 14.2%According to Mark Zandi, chief economist Moody’sThat does not mean bubble is bursting and prices will dropIt’s a combination of:Buyers being priced out of the marketLow inventoryFears of another real estate bubbleMortgage Bankers Association Economist – Joel KanExpect to See Number of People receiving mortgages to riseMostly driven by Higher End BuyersLooking on a National basis, prices are NOT expected to go downWhy Home Prices NOT Expected to Go Down Anytime SoonAnswer: Supply and DemandPricing decelerationBuilders cannot build fast enoughLow interest rates will continue to Juice DemandResult: Buyers are NOT going to get a ‘Deal”But may be facing fewer Bidding WarsWhy the Market Softening?Reduction in surge