Q: We were going to buy this year but all of this talk about failing loans and foreclosures is making us nervous.

Maybe this isn’t the best time to buy. At your suggestion we got pre-approved and know our credit is good. We also have a good down payment but we don’t want to make a big mistake. What do you think?
A: This is actually a great time for you to buy! It’s a good market for well qualified buyers. Rates are low, the lowest in many months, and homes prices have dropped in reaction to the financial news. On Vashon, which is a boutique market, we are not affected as much by the crisis in sub-prime lending and foreclosures. However, real estate has slowed all over the country so that’s reflected in a slower market here as well.

We have a higher inventory of homes than usual which is a help to buyers. Although housing prices have gone up even this year, the rise has not been as dramatic as in the past few years. That means that sellers can’t just list their homes for 20% or more above last year’s value and expect a rush of buyers. In fact, a significant number of homes for sale on Vashon have had to drop their price at least once and many are staying on the market longer than usual.

One important thing to remember, however, is that well priced, desirable homes are still selling in just days. Most of the homes I’ve sold this year I sold within the first week on the market. That’s because I had buyers poised and ready to jump on a well priced home that fit their needs.
If a home is well priced for our current market and meets your needs you still need to move quickly to put in an offer. Those homes still on the market after many months are generally over-priced.