Another question: How is the decreased availability of jumbo loans affecting what sells? Credit has been extraordinarily tight in that sector from what I have read, and rates have been quite high. So are the properties under $500K, say, selling at a brisker pace?
Also: Are we seeing the return of the (at least occasional) all-cash buyer?
About 6 months ago, it seemed everyone was cash. The past few months we have seen more loan action. To use a catch phrase, most of the people we deal with right now do not "run in herds." They are ready to buy if the price is right. They are not concerned with continued depreciation because they feel they are buying at below replacement cost. They like the property they are looking at and are looking at the property as a long term hold. If the values go lower they are not worried because within time it will rebound at least to a normal market. When, is not an issue. They love the area and have always wanted a beach home. They may rent the property but do not rely on these numbers to pay the mortgage. They are extremely educated on buying property and have great knowledge of finance. BTW, none (except one) that I know of purchased in 2003-2005. The one that did took his loss and today currently flips properties with me in this market. He has been able to do 3 turns in one year and we are currently working on two more.