Some inventory got gobbled up but there’s a new wrinkle in the home sales market!

Interest in the Ann Arbor Home buying market for April 2008 is up but a new problem is putting the brakes on buying a home: FINANCING!

Indications are that mortgage companies are taking longer to finance or are refusing to finance loans. So some homes that go under contract are taking longer to close or don’t close because of financing issues.

For months now, we’ve been watching mortgage companies tighten requirements to get a loan. Now we’re seeing hard proof that even lower interest rates won’t help buyers if the mortgage companies won’t grant those potential buyers home loans. The problem stems from several years of home loans being granted to people who did not have the credit history to support those loans.

With so many home loans ending up in foreclosure and the government cracking down on mortgage companies who made those loans, home buyers in 2008 are paying the price for the past mistakes of the mortgage industry.

I recently had to scramble to provide extra comparable information to an appraiser to help a home appraise to no avail. So we had to renegotiate.

The number of homes sold March 2008 compared to March 2007 is still down. As of today homes for sale in various school areas are:

Chelsea: 210, Dexter: 266, Ann Arbor: 806, Ypsilanti: 344, Saline: 277

With the potential of another drop in interest rates coming and a positive feeling in the Ann Arbor Real Estate housing market, Ann Arbor may end up leading the State of Michigan in home sales recovery.

Now all we need are lenders to loosen lending guidelines so that people who are legitimately qualified to get a loan can buy a home. Join us to get pre approved at our Home Buyer Seminar April 22 at 6:30 pm to talk to United Bank and Trust at 355 S. Zeeb Ann Arbor, MI 48103 You can RSVP 734-845-6542. Search all listings in Michigan with pictures and tours...Free! Kathy Toth & Team: Ann Arbor Area Real Estate Experts www.KathyToth.com Keller Williams Realty