So, What’s the problem?
So, What’s the Problem? The Banks, Stupid!
When polled about the biggest challenges facing the real estate market and economy, real estate agents rated bank related issues the highest. The biggest challenges were: 1) short sales, 2) ability to finance a new home purchase / loan qualifications, and 3) foreclosures. The significant shadow inventory caused by short sales and foreclosures continues to drag on real estate values. Though interest rates are at historical lows, increased loan qualifications are preventing first time home buyers from purchasing homes and current home owners from trading up into new homes.
We would have expected unemployment to be a greater concern to real estate agents. Persistently high unemployment was ONLY the fourth concern to real estate agents, which was surprising given how the poor economy and lack of jobs has dominated the news headlines for the past 24 months.