It's really grim out there.
I have a couple of good listings....and not getting even phone calls.
Part of the problem is that people are too worried about keeping their jobs. Those that may be considering moving up aren't, they are making do with where they are by updating, redecorating, adding on.
The first time buyers are too scared to do anything. Also, most of them get FHA loans and as of Jan 1....a seller is only allowed to help in buyer closing costs up to 3%. It was 6%.
Now this may not sound like a big deal but it is.....and it's screwy logic.
Fannie Mae (FHA) requires that a buyer put down 3.5% of their own money (or gifted) as down payment. They were thinking of raising it to 5%. That would be a 1.5% increase.
Instead....they lowered the allowable seller paid closing costs from 6% to 3%. That's 3% more that the buyer has to come up with.
For many first time buyers....that additional 1.5% is a lot of money when added to all the additional expenses that are incurred with moving into a house.
It would have been better to increase the downpayment amount.
Lending laws underwent extensive changes. I know the banks are in self-protect mode...but they went into overdrive. Even my long time investors have been drastically affected. 3 weeks ago their lender was willing to give them $30k on a property...last week, he switched it to $10k....and their financial status hasn't changed one bit!
There also hasn't been much advertising regarding the stimulus continuing.
Also....December, besides being the holidays.....was a month of incredibly wicked weather across most of the country. And it continues...who wants to go house shopping in wicked weather?