Challenges for the Good

We ran a story today about the shortage of first time buyers this year, due to challenges that many buyers are facing because of the market. The story begins with talking about how many buyers aren't qualifying for a good mortgage or loans due to credit standings. It also tells about the troubles buyers are facing because of a lack of inventory in the market. Less houses create more competition between buyers, and then therefore higher prices. 


We don't doubt that these challenges exist in the marketplace right now, in fact we've pointed out numerous times that the buyer's market of the last few years is coming to an end, and we've also talked about price changes and low inventories. 


All of this having been said, not all of these challenges are bad things. First of all, higher loan standards may prevent some buyers from making the same mistakes some buyers made back in the past when standards were lower. There were many buyers in 2005 or 2006 that regret the choice because they bought the house with a loan they got too easily, and were not able to pay back all of the interest. With higher credit standards, it means that when you're qualified to buy a home, you're really and truly qualified to buy a home, and preventing mistakes that other buyers have encountered before is definitely a benefit. Also, the lower inventory of houses currently on the market means a healthier real estate market, and if reporters had dug deeper, they'd have known that most buyers are only missing out on buying a home because they failed to pre-qualify for their loan.


The bottom line is yes, first time buyers-or really any buyers- those challenges can be seen as good things, and the silver lining is that buyers that can and are ready to begin their search may do so in a healthier real estate market than there's been in years. 


For more information, visit us on the web at www.springfieldhomebuyers.com, or simply call or text us at 417.872.9222.