The Aftermath
October 6th, 2008 | categories: Coconut Grove Real Estate Market Conditions
It has been 28 days since the Feds bailed out Fannie Mae and Freddie Mac. We have not YET seen a decline in the number of homes being sold. At least not when you compare the numbers with last year. Over the past 28 days here in Coconut Grove there have been 21 homes to go under contract and 6 homes to sell. During the same 28 days in 2007, there were also 6 home sales.
This doesn’t mean the market isn’t going to change in the future, but it does mean that buyers and sellers have not started to panic. And it means that the financial crisis did not stop these people from getting mortgages on their homes (considering that 5 of the 6 sales were under $1,000,000, its safe to assume that these weren’t cash deals). The numbers also suggest that there has not been an increase in fire sales.
I wish I had a crystal ball, but we will not truly know what impact this financial crisis will have on our market for many months to come. If the banks stabilize and fears ease, the home market will likely stay on track. On the other hand, if more financial institutions go under and people get scared we will probably see an increase in foreclosures and a decrease in prices.
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Hey Riley, great blog and yes, we all wish we had that crystal ball. But, since we don’t we just need to continue to remain calm and educate our buyers and sellers and our communities.
David
I wanted to comment and thank the author, good stuff