Yesterday Alan Greenspan spoke in Japan saying that the way to stabilize the US financial market is to reduce the housing inventory.  We know that the reason prices are low and getting lower is because there are simply too many homes on the market.  While there are legitimate reasons for needing to sell homes at this time we also are seeing too many homes on the market that are so overpriced they will never sell.  Combined with the huge number of bank owned (REO's) properties this all ads up to an oversupply that will take years to get out of the system. In just the past month I have advised 3 families wanting to sell their home but without a real 'need' to sell to stay put at least for the time being.  This is the most difficult real estate situation that homeowners in Southeast Michigan have ever seen. 

However, it is still a great time to be a home buyer.  Rates are low, mortgage money is available, FHA and VA financing remains a great tool.  This past week the ban on DPA's (Down Payment Assistance programs) was overturned in court.  This means that sellers can pay up to 6% - 3% for closing costs and 3% for down-payment - for the purchaser of their home. Working with a local lender is the key to a smooth transaction.  We've closed several zero down sales in the last month that went without a hitch.  Decent credit, zero down...it can still be done.  If you know someone wishing they could purchase their first home have them give us a call, it's a great time to buy!