Credit Crunch Might Be Good for Buyers

From where I sit, as a buyer’s broker, the recent credit crunch may be good news. Please don’t think me simple-minded because I am not reacting to it with trepidation. I know all about the collapse of the sub-prime mortgage market and last week's stock market gyrations. Those things just don't upset my day-to-day business.

Real estate is the ultimate long-term investment. If you invest in it with that attitude, you win! Your stocks have no use except to grow your money. Homes have the added bonus of being useful while they appreciate (and depreciate). You live in them; if you don’t want to live in them, you can rent them. Can’t rent your stock, not even on Craigslist!

I work in all market conditions like I work in all weather. Current conditions are bad for speculators and people who have been over-borrowing. But they are good for my clientele; I work with well-informed, qualified buyers. The weather is pretty fine for buyers with good credit, steady jobs, and down payment. It may even be getting better.

My lender friends are going nuts with all the changes in investor’s rules. The rules are changing daily, sometimes more than once daily. Some good -- but not great -- borrowers are getting caught in this investor reaction to the credit crisis. But it is still sunny times ahead for buyers who are solidly qualified to borrow.

I have been hoping for, but not quite seeing a true “buyer’s market.” Dropping prices and higher inventory are sunshine to my day. I remain hopeful, but still bring my metaphorical umbrella to work everyday.