During the housing downturn of 2008-2010, property owners who wanted to sell really had a problem because of the lack of qualified buyers. Due to the financial crisis and subprime-crisis of 2008, banks pulled back and stopped lending; therefore, the number of "qualified" buyers went to zero.
The pendulum had swung too far to the left on banking and lending practices in the boom years of 2006 and 2007. Once Bear Stearns collapsed, banks started back peddling, calling loans due, and severely restricting new loans.
Not only were some of the largest banks failing (like Bear Stearns), but over 500 smaller banks (federally chartered lending institutions) also failed. This caused a serious constraint in the financial market, which trickled down to new loans being granted, and that trickled down to homes not getting sold.
Like the San Juan River, which dries up ever summer leaving boaters stranded in shallow water, the real estate market screeched to a halt and no one could sell.
Thankfully, that's not the case today. Banks are lending again, and have been for quite some time. In addition, demand which was bridled for so long (while the number of new potential buyers entered the market and continued to grow), supply was limited. Supply was limited because builders stopped building (because they couldn't get the funding). This caused an exponential housing demand curve for the last several years.
And who caused all of this? What was the leading force behind all of this demand manipulation? It was the financing. The banks did this. If the money is easy to get, it fuels a robust housing market. When the supply of money restricts, so also does the housing sales.
So how do you sell your central Minnesota house fast? Call a professional house buyer like Lakes Area Home Buyers. They can provide you a written offer within 2 days and close within 5 days. Would you like to sell your home fast? Call them today, 612-208-7878.
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