Overall, interest has been high. We've seen a significant uptick in people attending our open houses. Many of these prospective buyers have been lamenting the lack of inventory and subsequent increased competition. First time home buyers have been most effected by the added competition with cash buyers/investors winning most offer battles. F.H.A buyers just cannot compete with cash buyers who place upwards of 20% down on the few desirable properties that come to the market.
That said, we're once again seeing the flippers returning to the market. Many have asked - how can this be? Didn't these flippers lose their shirts when the market crashed? Some did, but many of these investors only lost the money they put down by simply walking away from their properties. After all, one does not need exceptional credit to buy homes once securing adequate cash reserves which many did during the boom years. They could now afford to sit back on the sidelines waiting for prices to fall before jumping back into the market.
Now that many buyers are having problems securing financing with the new lending rules, cash buyers are taking advantage of the situation by buying the available low cost properties, investing a minimal amount in upgrades and then flipping the properties for a higher price once again. Those who are in a position to sell should while this market benefits them. Have a great day folks!
