Credit Crunch Changes The Game
Thursday, May 1, 2008
What will the credit crunch bring to today's market in the Welches, Rhododendron, Government Camp and Brightwood area?
1. Reduced equity lines of credit.
2.Removing subprime and Alt-A loans completely
3.Higher fees for loans that lenders do make.
Lending practices of the years 2002-2007 are over.
Results:
Builders will be building smaller homes.
Lenders will be lending much less money.
Buyers will be saving home and borrowing less.
Fewer buyers, fewer loan products, and higher loan costs create an even more competitive market for sellers and lowering prices through that competition to sell.