In case you haven't heard, seller fund down payment assistance officially ended on Tuesday, September 30th. Thanks to the wisdom of our government, the same brain trust that wants us to get behind a t $700 billion bailout of their crooked buddies on Wall Street. The implications will be far and wide and the trouble with the current proposed bailout is that it is coming before the full effects of the canceled seller funded down payment program will be realized by the housing markets.
Here is what's going to happen; The government is going to pass their pork ridden $700 billion bail out, in about 6-12 months home sales will have dropped off by another 20%, this will drive home values down further and faster than any of the geniuses at the government foretasted, there will be a new round of foreclosures, more bank failures, (after the $700 billion bailout that was supposed to save us) and in order to avoid another "economic Pearl Harbor" the government will need about another $500 billion dollars to bail us out again. Catastrophic! We did it to ourselves, I think it's time our country bit the bullet, let the whole thing more quickly run it's course, and then we can all get on with our lives and making a living.
That's the bad news. The good news is there are plenty of homes for sale and great deals to be had, so if you are actually looking for a place to live, raise a family and become part of a community, this is a great time to buy a home. If you are trying to sell a home you purchased in the past 2 years, you'll either want to wait out the storm or get ready to drop your price. This isn't true in every city and neighborhood as there are still pockets of strong housing values, usually associated with great school districts and highly desirable suburbs and neighborhoods.
The other good news is that there still is and always will be mortgage available for people to buy homes, as long as they have great, yes GREAT credit, in spite of what you have been hearing in the news lately about the credit crunch.
Happy House Hunting.
