Home Sellers Reject Price Cuts

Welcome back, Dreammakers, to Today in Mortgages! In this episode, hosts Michael and Richard discuss why the market has strong demand but weak sales numbers.

Today's article from CNN.com says "Here's why the housing slowdown isn't lowering sales prices." Buyers know they hold the cards right now, but sellers are stubborn. Unless you really have to sell, sellers won't come off the price. 

Sellers are doing concessions, but once contracts get to the inspection stage we are seeing 15% of sales being cancelled, up from 6% in May. Showing that buyers are willing to walk away from contracts right now. Buyers are qualifying right on the edge, and don't have room in their budgets to negotiate with the sellers or pay for more fixes found during the inspection.

Seems like we should be seeing a general across the board reduction in home prices. However, homeowners are sitting on low interest rates, and they don't want to give away all of their equity. Buyers just can't afford today's prices. Listen in as we discuss this and more!

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Today in mortgages is produced by Network Funding, LP, which is an equal housing lender, NMLS# 2297. 

The content of this program is meant to be a commentary on mortgage and real estate news and any discussion of rates and or products should not be taken as individual mortgage or home buying advice or pricing estimates, and any commentary on this show is should not be considered a promise to make a loan. All applicants for a loan must qualify and you should consult a professional regarding your individual loan scenarios for your financial situation. 

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Today in mortgages is produced by Network Funding, LP, which is an equal housing lender, NMLS# 2297. Corporate office located at 10370 Richmond Ave. Suite 900, Houston, TX 77042.

The content of this program is meant to be a commentary on mortgage and real estate news and any discussion of rates and or products should not be taken as individual mortgage or home buying advice or pricing estimates, and any commentary on this show is should not be considered a promise to make a loan. All applicants for a loan must qualify and you should consult a professional regarding your individual loan scenarios for your financial situation. Visit our website at nflp.com/licenses for all state licensing and other legal information.