Posted by Jonathan J. Miller -Friday, March 2, 2012, 5:48 PM
Joe Weisenthal at BI posts a subtle headline: This Is The Trend That Could Asphyxiate The Housing Recovery based on a NAR/Nomura chart that shows that about 1/3 of all real estate professionals are experiencing blown deals. Of the 1/3:
- Low appraisal ±5% – It’s good to see my profession not responsible for all the world’s problems and the least of the “blown deal” phenomenon.
- Tight credit ±10% – Surprised it’s not higher although this accounts for people who applied for a mortgage. One of the big issues today is potential buyers staying on sidelines because they don’t think they would qualify. In other words tight credit is a much large issue than illustrated.
- “Other” ±20% – The largest category by far, the dreaded “other” is the bane of our economic existence. My mother always told me to look both ways when crossing the street or “Other” might clip you in a large sedan. I’ve got to think that the lion’s share of “Other” is made up of buyer cold feet and some sort of appraisal/credit combo.