2008 - a year of disappointment for buyers and sellers. Is there hope for '09?
To our Brooklyn friends and neighbors,
As we look back on 2008, we can say without hesitation that credit tightening and strict rules regarding employment have made this year one of the most difficult for potential homebuyers who were trying to obtain a mortgage. Younger people with more modest incomes were finding it increasingly difficult to buy their first home. Many who only a couple of years ago would have qualified for a home way beyond their means had to lower their expectations, turning to co-ops, foreclosured properties, or if they had enough of a down payment, an income producing property. Sellers have had their own share of problems, with the prices of homes in almost all areas of Brooklyn plunging. With fewer qualifying buyers it's been tough all around. With the jobless rate the highest in years and it will be quite awhile before people's confidence in the economy returns.
That's why it was especially good news to hear the news about interest rates dropping to the lowest in over 30 years. Hopefully, this will stimulate the housing market by making it easier to obtain financing. We feel that this news is encouraging and things may improve. As a potential seller or buyer, how do you feel this will impact you in the coming year? Will you be more likely to buy, sell or stay where you are?
Let's hope for better luck next year!
Bonnie & David