Zillow looked at 25,000 prospective buyers from Sept. 1 - 15th; even when the low credit score applicants had a 15-25% downpayment, they received zero offers. Read the WSJ, the Zillow blog, and see Realty Check.
In Charlottesville / Albemarle, there are many other issues besides credit scores that are keeping buyers out of the market.
- The large number of folks who come here for 2-4 years can't buy because they'll lose transaction costs plus however more home prices decline;
- Lots of potential "move-up" buyers would have to sign contingent contracts if they wanted to buy again--but if they purchased in the past 6 years, their asking price for current home will be deemed too high for today's buyer (a newly built home might cost less at this point....);
- The $500k - $1M market is gasping;
- The $$$ properties are languishing;
- Lots of folks who are selling are trying to leave the City for a new job, retiring, or trying to unload an albatross--that is, they're not buying again.
- Toss in a City rate of 23% poverty, County at 10%....
- And then there's the pricing....
"The New Normal" is a multi-part series examining local and national housing issues. See posts here.