Looser Lending Guidelines Would Help Mission Viejo Home Sales

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Looser Lending Guidelines Would Help Mission Viejo Home Sales

The National Association of Realtors cites lenders’ conservatism and appraisal complications as among the top two impediments to a real estate recovery, according to spokesman Walt Molony. The trade group argues that home sales volumes would rise 15 percent if lending standards simply returned to pre-bubble norms. Sales of existing homes fell sharply in February, but the Realtors project volume will rise 7.4 percent this year. Still even the Realtors expect prices to continue declining, falling by about 1 percent this year before rising modestly next year. In other words, things aren’t getting worse, really, but they’re not improving dramatically either. Molony noted that transactions this year are being done without a federal tax credit that helped boost activity last year. Real estate activity often picks up in the spring as sellers strive to get top dollar catering to buyers who want to move in the summer.

Mission Viejo is feeling the effects of the tightening in lending standards just like cities across the country. Mission Viejo homes are tending to sit on the market a little longer and there is not the sense of urgency that the federal tax credit brought to the Orange County Real Estate market last year.
And while predictions are that prices nation-wide are expected to decline about 1% this year, for most Mission Viejo home buyers, this is not a major concern. Real Estate activity in Mission Viejo is certainly picking up as we head from spring and into summer. Multiple offers on $700,000 homes – mostly stimulated by aggressive pricing to entice qualified buyers.
Orange County home buyers must protect their credit rating, keep their debt down, and fully document their income and employment to stay competitive in today’s home buying market.

Originally Posted at Orange County Real Estate

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