Buyers are beginning to understand that prices have dropped up to 50 percent in some vacation home markets, but lenders are in short supply, practitioners said this week at the 2009 REALTORS® Midyear Legislative Meetings in Washington, D.C.
I've had banks pull out right before the closing, because they are constantly reevaluating how many and what type of mortgages to give out, said Anne Blatz, ABRM, CRB, a branch executive with Kinlin Grover GMAC Real Estate in Brewster, Mass.
When foreign currency was stronger against the U.S. dollar, many Canadians were interested in purchasing in Arizona and California. However, banks were hesitant to qualify them for loans.
Practitioners have had to come up with some very creative deals to get the job done, such as owner-financing or property trades. In some resort regions, foreign nationals are accounting for up to ten percent of all buyers and more have become interested just as inventory levels decrease in some regions.
For buyers who are on the fence, real estate pros said you should help customers understand that deals exist. You have to be specific about numbers, said Timothy Kinzler, CIPS, e-Pro®, sales associate with Coldwell Banker in Delray Beach, Fla. Some don't realize that you can get a beachfront condo for just $100,000.
Through Facebook, Kinzler posts messages about properties he has closed on which has lead to more calls. Recently, he sold a $97,000 beachfront condo to a man from Hoboken, N.J. who will use it as a get-away. A few years ago, this type of property started at $250,000.