Charleston House Buyers: You may not really be in touch with the real estate market and it’s plight these days. If you are planning on selling your house any time soon, there are some things you need to know about the market and how it came to pass. You may, in fact, be within the situation yourself.A number of years ago it was relatively tough to buy a house. It seems like only those that were the most stable financially were able to buy.
Then something happened that changed the real estate world altogether. Loans suddenly were so easy to get that just about anyone could get a home loan.With so much advertising that promised loans at nearly no interest and no money to put down, people were clamoring to buy their dream houses. This was a time that saw huge jumps in home ownership and there were often more than one bid on a house. If your house was for sale then, it wouldn’t be unusual to have two or three offers on your house.
Getting the asking price was more or less standard business.That could not possibly last. For one thing, the loans that people were taking often consisted of the adjustable rate mortgage. That’s fine when the interest rates are very low. When the interest rates started to climb, though, their loans reset and they were suddenly forced to pay sometimes as much as several hundred more per month for their mortgage payment. That has caused many to lose their homes.
Another situation occurred simultaneously. The housing prices were high at that time. While some were able to sell their homes for a profit, they were inclined to buy ‘up’ and would purchase a home that was also priced high. A few years later, as so many were losing their homes, the prices started to drop. They dropped so dramatically, in fact, that homeowners with fairly new mortgages have ended up ‘upside down’ in their homes.
That means they now owe more than their homes are worth. That has driven down the prices even further because so many people are finding it necessary to sell and get out from under the lender. Job losses, the difficult economy, and other factors have all contributed to the real estate market bubble burst. People are finding it tough to make the high mortgage payments so there are now more houses for sale than there are people looking to buy at this time.
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