This has bothered me for quite a while now. I have had my suspicions but just confirmed it today-in my mind anyhow. I believe the first time home buyers or the step up home buyers can't get financing to purchase a home.
I pulled the market statistics for this month for the zip code of 35803. One of the zip codes where I have a house listed. Here is what I found:
Active: 238 Med. Price: $174,900
Pending: 13 Med. Price: $245,900
Sold: 17 Med. Price: $238,227
Withdrawn: 12 Med. Price: $180,250
This is absolutely crazy. Homes that are priced above what a first time home buyer would buy are selling faster than the less expensive homes. With interest rates what they are and prices dropping, these homes should be selling. The only explanation is financing.
Is anyone else running into this? Is there anything we can do?