I’ve been working with several buyers recently, and as I assist them trying to sort out if this is the right time to buy…it occured to me that as we try to “guess” the market…a little logic and common sense can help
It’s only logical that the ‘bleeding’ from these ARMs has to stop fairly soon. We’ve been weathering through this credit crisis now for over a year, year and a half. ARMs were generally 2, 3 or 5 year terms. With lenders currently having such tight qualification and underwriting guidelines, it’s clear that we won’t see any more of these overextended owners in the next few years…only the trailing bleeding out of the glut of ARMs from the past 5 years.
When this all calms down, we’ll still be the beautiful island of Kauai, and if it makes sense for a buyer to own here – might as well negotiate now when sellers are motivated. We can’t predict the future, but if a buyer is willing to hold the property through any further minor fluctuations, it’s only logical that a property currently at a discount price is bound to be worth more.
What are your thoughts??