REAL ESTATE NEWS - GREATER CLEVELAND - WEEK ENDING 02/08/09

The Senate and House continue to work on the economic stimulus plan that includes action to support the housing market. There is a critical need for a resolution of the housing crisis as a main priority for the Country's recovery from the U.S. economic recession.

For Buyers, there is plenty of mortgage money available, both FHA & conventional. Rates have increased somewhat. However, housing prices remain low. There are reports that Ohio housing prices may have hit their lowest point in 2009 & may begin to rise in 2010. So, 2009 continues to be a wonderful time to buy, especially for first time home buyers.

For Buyers who do not have the down payment required by lenders, there is positive information that some of the non-profit organizations who have helped first-time home buyers with down payment moneys may receive funding for that assistance again this year. Stay tuned for further information as it becomes available.

For Sellers, homes will sell when they are priced to sell relative to each given home's condition, location, competitive homes on the market & comparative home sales in the last 3 months. Remember that the appraisal by the Buyer's lender determines the Lending Value, which is the Market Price for a given transaction. Sellers need to be prepared to sign an Amendment to the Purchase Agreement to adjust the original Purchase Price to the Market Price as determined by the lenders' appraisals, if the Sellers want the sale to proceed. Realistic list prices at the time of listing & purchase prices when a Purchase Contract is signed will help avoid lender appraisal surprises.