In spite of numerous protestations to the contrary, the real estate market locally isn?t making many gains. ?From the StarNews:
Home sales are bouncing along at what is hoped to be the bottom. . . .?Nationally, existing home sales fell 3.8 percent in May, according to the National Association of Realtors (NAR). And on Friday, the government reported that sales of new-construction homes dropped 2.1 percent last month.
This is troubling to say the least. ?The reality is that lending standards are tougher. ?Banks got a reprieve from irresponsible lending and now they?re starting to act like they should have some time ago.
In fact, Alpha Mortgage and other companies won?t consider an application for those with a low credit score.
?640 is the bottom to be considered,? said Chris Hutchens, a mortgage banker at Alpha Mortgage in Wilmington. ?It?s the new magic number.??Pete Frandano, president of the Brunswick County Association of Realtors, said the tight credit market is a major problem facing the industry.
I disagree, if they had never made a host of irresponsible loans to start with we probably would have seen the bottom some time ago. ?This, by no means, excuses the uncertainty of Obamacare/taxation issues that still loom for folks wanting to hire. ?But real estate caused many of its own problems.
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